AC 7-4-2014
Item No. – 4.33
Syllabus for the
M. E. (Signal Processing)
Program: M.E.
Course: Signal Processing
(As per Credit Based Semester and Grading System with
effect from the academic year 2014–2015)
UNIVERSITY OF MUMBAI
1 year Post Graduate Diploma Courses
Commercial Banking
Retail Banking
Capital Market
Investment Management
(Credit Based Semester and Grading System
with effect from the academic year 2014-15)
Syllabus
For
Post Graduate Diploma Courses in Management
(Effective from Academic Year 2014-15)
Title :- Diploma in Commercial Banking/Retail Banking/Capital
Markets/Investment Management
Name of the program – Post Graduate Diploma Courses
Nature of the program – One year diploma course of Mumbai University
Eligibility Criteria
A learner for being eligible for admission into the Post Graduate Diploma Courses shall have
passed the Bachelor’s degree examination of this university or any other university recognized as
equivalent thereto.
Preamble
The working professionals often need to upgrade their skills to match ever evolving industry
requirements. In today’s era of information, corporates are increasingly demanding professionals
with in – depth and exhaustive knowledge in a specific domain. The new diploma courses and its
curriculum will help realign the current industry expectations in terms of the skill sets demanded
under new business environment
The Current Scenario
Changing facets of businesses under globalised environment
Dynamism in industry practices and evolution of technology
Emergence of new businesses and business practices
Expectations of Key stakeholders viz. industry, academicians and students
Objectives of new Diploma programme
The new diploma programme prepare students for a career in diverse sectors nationally as well
as globally. It facilitates absorption & application of knowledge in theory and practice across
multiple functional areas of management and enables students to adopt an integrated approach
towards real life situations and circumstances
The Objectives of Diploma courses are: -
To help students to concentrate on goals tailored to career
To provide some flexibility to institutions to impart new and contemporary curriculum
To design curriculums in line with expectations of stakeholders – viz. corporate, students
and community
To upgrade skills in cross functional areas for the benefit of working professionals.
The goal is to imbibe and enhance the following skill sets
Focused on specific industry requirements
Exposure to global practices
Enhancement of cross – functional skills
Encourage Peer based learning and team work
Highlights of the New Diploma Programmes & their Curriculum
1) Introduction of new domain study with required skill sets in Commercial Banking, Retail
Banking, Capital Markets, Investment Management, Financial Risk Management and Project
Management
2) Shorter duration course with focused learning of specific industry requirements
3) Introduction of new subjects having current industry expectations
Potential Opportunities in the Banking Sector
There is immense scope for job opportunities in the Banking Sector. It is estimated that with
close to 50% of workforce in public sector banks set to retire in the next few years, the banking
industry will soon be among the top employers offering 5 – 7 lakh jobs. Apart from core banking
jobs, there will be an increase in backend jobs, including those in processing and outsourcing.
The new employees need to be trained well and made competitive to face the challenges of the
banking sector. Thus this course will essentially bridge the talent gap in public and private
sector.
Details of the new diploma programmes
Structure of the Diploma Courses Curriculum
Post Graduate Diploma in Commercial Banking - Semester I
Introduction to Equity, Fixed Income Securities &
Derivatives
Introduction to banking
Central bank functions and banking regulations
Accounting and bank
audit
Introduction to Risk
Management
Post Graduate Diploma in Commercial Banking - Semester II
International banking
Merchant banking
Banking technology and payment systems
International banking regulations
Dissertation Project
Post Graduate Diploma in Retail Banking - Semester I
Introduction to Equity, Fixed Income Securities &
Derivatives
Introduction to banking
Central bank functions and banking regulations
Accounting and bank
audit
Wealth Management & Alternative Investments
Post Graduate Diploma in Retail Banking - Semester II
Financial Markets, Products & Institutions
Introduction to Risk
Management
Microfinance & Financial Inclusion
Banking Technology & Payment Systems
Dissertation Project
Post Graduate Diploma in Capital Markets - Semester I
Introduction to Equity, Fixed Income Securities &
Derivatives
Capital Markets
Security Analysis & Portfolio Management
Entities in Financial Services World & Role of a Finance
Executive
Analysis of Financial Statements
Post Graduate Diploma in Capital Markets - Semester II
Regulation of Financial Services Companies
Introduction to Risk
Management
Derivatives Products & Strategies
Commodities Market
Dissertation Project
Post Graduate Diploma in Investment Management - Semester I
Introduction to Equity, Fixed Income Securities &
Derivatives
Wealth Management & Alternative Investments
Security Analysis & Portfolio Management
Entities in Financial Services World & Role of a Finance
Executive
Analysis of Financial Statements
Post Graduate Diploma in Investment Management - Semester II
Regulation of Financial Services Companies
Introduction to Risk
Management
Derivatives Products & Strategies
Commodities Market
Dissertation Project
Project
As part of the curriculum, the students will work on a project assignment of 100 marks relevant
to their chosen Diploma discipline. They will submit a project report to the institute at the end of
the second semester.
Faculty Students Ratio
Faculty students ratio shall be 1:15. For staffing pattern, there shall be one Full time faculty at
each diploma programme. The rest shall be drawn from Industry as domain experts, who shall be
designated as visiting faculty/adjunct faculty. Institutes are expected to attract more people with
industry experience to participate in this programme. To attract more industry experts to
participate in these programmes, they should be suitably remunerated.
Teaching Pedagogy
Teachers are expected to impart knowledge through lectures and new , innovative pedagogical
approaches. Some of these techniques are: -
Group Discussions, Lectures, Role plays, Field Work, Workshops, Counseling Sessions,
Watching Educational and Informative Videos, Assignments, Quizzes, Tests, Live Projects, Case
Studies, Presentations, Simulations, Industrial Visits, Participation in academic and extra –
curricular activities, inculcation of industry specific skills and training & development sessions
The lectures can be scheduled every day evening from 06.00 pm to 09.00 pm or on Saturdays
and Sundays to accommodate all subjects and to suit the convenience of employed students who
would enroll for value addition in their present status.
Rules and Regulations related to ONE YEAR POST GRADUATE DIPLOMA
COURSES
Eligibility A learner for being eligible for admission into the ONE YEAR
POST GRADUATE DIPLOMA COURSES shall have passed
the Bachelor’s degree examination of this university or any
other university recognized as equivalent thereto.
Duration The duration of POST GRADUATE DIPLOMA COURSES
courses shall be of one year comprising of two semesters. There
shall be one University Examination in each semester.
Fees The tuition fees for POST GRADUATE DIPLOMA COURSES
shall be Rs 50000/year.
Examination The examination for POST GRADUATE DIPLOMA
COURSES shall be semester based and held twice a year on
such dates as may be fixed in that behalf.
A candidate must forward his application for admission to the
examination to the controller of examination on or before the
date fixed.
A Student who has once registered himself for the POST
GRADUATE DIPLOMA COURSES, but has not appeared at
the said examination or has appeared and failed there at and
desires to reappear at a subsequent examination shall renew his
registration for the examination at least three months prior to
the date of commencement of the examination after paying the
prescribed fees.
Reappearance
in
Examination
On payment of a fresh fee, a candidate who fails to pass the
examination in a subject(s) shall be allowed to reappear thereat
on a subsequent occasion.
Evaluation A candidate shall be examined in the subjects mentioned in the
POST GRADUATE DIPLOMA COURSES at the end of each
semester.
Diploma in Commercial Banking – Semester – I
Sr.
No. Subject
Teaching Hours Assessment Pattern
No. of
Sessions of
90 minutes
No. of
Sessions of
90 minutes
per week
Continu
ous
Assessm
ent
Semester
End
Examinati
on
Total
Marks
Duration
of Theory
Paper
No of
Credits
1
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
30 2
40 UA 60 UA 100 3 4
2 Introduction to
banking 30 2
40 UA
60 UA
100
3
4
3
Central bank
functions and
banking
regulations
30 2
40 UA 60 UA 100 3 4
4
Accounting
and bank
audit
30 2
40 UA 60 UA 100 3 4
5
Introduction to
Risk
Management
30 2
40 UA 60 UA 100 3 4
Total No of Credits 20
UA: - University Assessment; IA: - Internal Assessment
Diploma in Commercial Banking – Semester – II
Sr.
No. Subject
Teaching Hours Assessment Pattern
No. of
Sessions of
90 minutes
No. of
Sessions of
90 minutes
per week
Continu
ous
Assessm
ent
Semester
End
Examinati
on
Total
Marks
Duration
of Theory
Paper
No of
Credits
1 International
banking 30 2
40 UA 60 UA 100 3 4
2 Merchant
banking 30 2
40 UA
60 UA
100
3
4
3
Banking
technology and
payment
systems
30 2
40 UA 60 UA 100 3 4
4
International
banking
regulations
30 2
40 UA 60 UA 100 3 4
5 Dissertation
Project 100
4
Total No of Credits 20
UA: - University Assessment; IA: - Internal Assessment
Semester Total No of
Credits
Semester I 20
Semester II 20
Total 40
DIPLOMA IN COMMERCIAL BANKING
SEM – I
Introduction to Equity, Fixed Income Securities and Derivatives 100 marks
(15 Sessions of 3 Hours Each) Sem I
Equity
SL.No Particulars Sessions
1 Revisit basics - formation of a company, need for capital
Primary market for raising funds - equity IPO
Steps in issue management - approvals, marketing, underwriting,
regulatory reporting, book building and issue closure
Issue prospectus, reporting to authorities, cash management
Investor's perspective on investment in equities - risk & return,
mutual funds - equity funds and comparison with direct investment
in equity
2 Sessions
of 3 Hours
Each
2 Secondary market - types of orders, functioning in US, EU and India
Corporate actions - dividend, rights, bonus etc.
Latest developments in equity trading – algorithmic analytics etc.
Fundamental analysis - b/s, P&L, ratios, peer and competitor
analysis
Technical analysis - DMA, predictive tools, charts
Introduction to quantitative trading techniques
Types of markets - Auction, Dealer, market making and hybrid, dark
pools, crossing networks, communication networks and other
alternative trading systems (ATS)
1 Session of
3 Hours
Each
3
Recent advances in technology - mobile platforms, co-location etc.
Messaging in post trade pre settlement - Straight Through
Processing (STP), messaging protocols - SWIFT, FIX
Clearing and settlement of equity trades - comparison of regulated
exchanges and over the counter (OTC), margin and risk
management, trade failure, consequences, auction, securities lending
and borrowing
1 Session of
3 Hours
Each
Fixed Income Securities
SL.No Particulars Sessions
4 Revisit basics - formation of a company, need for borrowing,
leverage
Types of bonds - secured, unsecured, Government bonds, Company
debentures, term structure, inflation protected, convertible etc.
Terms used in bond markets - yield, curve, coupon, rating & credit
risk
1 Session of
3 Hours
Each
5 Bond mathematics - time value of money, cash flow based
calculations - NPV, IRR (yield to maturity), convexity, duration and
immunization
Issue of bonds in primary markets - IPO process, placement and
market making
Steps in issue management - approvals, marketing, underwriting,
regulatory reporting, rate structure
Issue prospectus, reporting to authorities, cash flow - liability
management
Investor's perspective on investment in FI - credit risk & return,
Mutual funds - bond funds and comparison with direct investment in
FI, call risk, inflation risk and reinvestment risk
2 Sessions
of 3 Hours
Each
6 Secondary market - types of orders, functioning in US, EU and India
Corporate actions - coupon, processing of convertible warrants
Techniques in FI trading - LIBOR, zero coupon yield curve,
modeling, yield analytics etc.
Fundamental analysis - b/s, P&L, liquidity ratios, peer and
competitor analysis, past history of defaults by the issuer
Clearing and settlement practices in fixed income securities market
2 Sessions
of 3 Hours
Each
Derivatives
SL.No Particulars Sessions
7 Forwards - characteristics, OTC markets where forwards are used,
risk management in absence of central counterparty, flexibility in
customized contracts and disadvantages in trading such contracts
Futures - standardization over forwards, regulated markets where the
futures are traded, financial and non financial futures contracts,
terms and conditions, daily mark to market as risk management
mechanism, pricing of futures, how the futures price tends to spot
price towards maturity, delivery mechanisms for settlement
Options - types of options - put and call, buyers and sellers of
options, trading in options contracts, margin for risk management,
settlement practices for exercised options, effect of corporate action
on options, option chains, open interest, calculation of option price
(basics of Black and Scholes model), strike price, intrinsic and time
value of options, option risk - return charts, greeks and basic
calculations
Swaps - interest rate, forex, equity-fixed income swaps, OTS swap
transactions, how banks act as intermediaries for swaps, cash flow
management, resets and calculations
2 Sessions
of 3 Hours
Each
8 Mutual funds - asset management company, MF trust, issue of units,
distribution channels, cash flow management for open ended funds,
types of schemes - open-close, growth-sectoral-equity-fixed income
etc., MF ratings, entry-exit loads, how ETF differs from MF, NAV
calculation, regulation of mutual funds - SEBI and SEC
Foreign currency as investment asset class, derivatives on foreign
exchange rates, hedging, bid-offer spreads, simple calculations
Insurance - life and non life insurance schemes, riders, actuarial
basics, regulation of insurance sector, asset liability and risk
management for insurance companies, premium collection and
bonus distribution
3 Sessions
of 3 Hours
Each
SL.No Particulars Sessions
9 Pension funds - defined benefit, defined contribution funds,
employee and employer contributions, investment of pension fund
investments, regulation, differed tax schemes, types of pension funds
in US and UK
3 Sessions
of 3 Hours
Each
Mortgage backed securites - asset (receivable) pooling, formation of
a trust company, selling of pooled assets, creation of securities,
selling and distribution to retail investors, senior tranches,
repayment risk, how the mortgage market triggered the collapse in
US in 2009-10
Other asset classes - alternative investments, hedge funds, private
equity, investment in collectibles - art, wine etc.
10 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text:
The Hand Book of Fixed Income Securities- Fabozzi Frank McGraw Hill
International.
Fixed Income Markets & Their Derivatives: Suresh Sunderasan –Thomson
Learning.
Swaps : Richard Flavell – John Wiley Publications.
Security Analysis and Portfolio Management (6th Edn.) By Donald Fischer and Ronald
Jordan, Prentice Hall of India (1995)
Securities Analysis and Portfolio Management , Prasanna Chandra, Tata McGraw Hill
(2002)
Options, Future & Other Derivatives – by John. C.Hull
Applied Derivatives – Richard .J. Rendleman, Jr
Special Focus on:
Chap: 2 -- PUT – CALL Parity
Chap : 3 & 4 -- Binomial Option Pricing Models
Option Volatility & Pricing – Sheldon Naten Berg
Introduction to Banking 100 marks (15 Sessions of 3 Hours Each) Sem I
Reference Text:
1. Banking in the new Millennium by ICFAI University banking series edited by N
SL no Particulars Sessions
1. Introduction to Banking
Role of banks in an economy 2 sessions of 3
hours
2 Structure, growth and development of banking in India 1 session of 3
hours
3 Study of bank balance sheet and profit and loss account
Treasury and funds management in banks 2 sessions of 3
hours
4 Risk management in Banks
Assets liability management in banks 2 sessions of 3
hours
5 Regulatory role of RBI and its monitory policy 1 session of 3
hours
6 Cooperative banks, RRB’s and rural banking in India 1 session of 3
hours
7 Special issues in Indian banking sector
Narasimham committee report
Basel II
Assets Reconstruction Companies
Securitization Act
3 sessions of 3
hours
8 Consolidation In Indian banking sector 1 session of 3
hours
9 Case studies and Presentations 2 sessions of 3
hours
Rajashekar, Year 2001.
2. Banking Strategy by ICFAI University banking series edited by Katuri Nageshwara Rao,
Year 2002.
3. Central Banking by Charles Goodhart
4. International Corporate and Investment Banking : Practice and Law by Largan Mark,
UK/Institute of Financial Services/2003
5. European Banking and Financial Services Law by Gerster /Schwander,
Netherland/Kluwer Law Int/2004
6. Banking Supervision and Systemic Bank Restructuring : An International and
Comparative Legal Perspective - By Mwenda Kenneeth Kaoma, London/Cavendis Pub/2000.
7. Risk Management in Banking- 2nd ,By Bessis Joel, Chichester/John Wiley/2004.
8. Commercial Banking : The Management of Risk-2nd By Frster Donald R/Gup Benton
E/Kolari James W, Australia/South-Western/2001.
9. Strategic Business Management and Banking, By Sarkar A N, New Delhi Deep&Deep/2005/.
Central Bank Functions & Banking Regulations 100 marks (15 Sessions of 3
Hours Each) Sem I
SL.
No
Particulars Sessions
1 Central Bank Functions
PART I : The Fundamentals 2 Sessions of 3 Hours Each
The Scope & Subject Matter of Macroeconomics
An Introduction to the Economics of Growth & Development
An Introduction to the Indian Economy - Its Salient Features 2 Sessions of 3 Hours Each
2 Session of 3
Hours Each
2
PART II: The Economic Markets
The Money Market & the Role of Central Banking
How does Commercial Banking Effect Industry & Business
2 Sessions of 3
Hours Each
3 PART III: World Economy and Banking
The World Bank, and IMF conditionalities leading to the liberalisation - privatization -
globalisation exercise and beyond.
Responsibilities of Central Bank - RBI, Federal Board of US
Foreign exchange market, balance of payment and reporing to central
bank
Inflation management and control over money supply using
Government bonds
Developmental measures supported by banking sector
3 Sessions of 3
Hours Each
Reference Text:
1. Banking in the new Millennium by ICFAI University banking series edited by N
Rajashekar, Year 2001.
2. Banking Strategy by ICFAI University banking series edited by Katuri Nageshwara Rao,
Year 2002.
3. Central Banking by Charles Goodhart
4. International Corporate and Investment Banking : Practice and Law by Largan Mark,
UK/Institute of Financial Services/2003
5. European Banking and Financial Services Law by Gerster /Schwander,
Netherland/Kluwer Law Int/2004
6. Banking Supervision and Systemic Bank Restructuring : An International and
Comparative Legal Perspective - By Mwenda Kenneeth Kaoma, London/Cavendis Pub/2000.
7. Risk Management in Banking- 2nd ,By Bessis Joel, Chichester/John Wiley/2004.
8. Commercial Banking : The Management of Risk-2nd By Frster Donald R/Gup Benton
E/Kolari James W, Australia/South-Western/2001.
9. Strategic Business Management and Banking, By Sarkar A N, New Delhi Deep&Deep/2005/.
10. Management of Banking & Financial Services – Justin Paul & Padmalatha Suresh – Pearson
Education
11. Principles and Practices of Banking – Indian Institute of Quantitative Finance – MacMillan
Publishers
12.Banking Law & Practice – P.N Varshney
13.Banking Law & Practice – R.K Gupta
4 Banking Regulation
Evolution of banking sector - historical perspective
Regulatory arrangements in different countries - Cental Banking and
Government
Central bank supervision over different types of banks
Statutory requirements - liquidity ratios, subscriptions to Government
bond issues
Evolution of regulation through various crisis situations
Introduction to BASEL II norms for risk identification and
provisioning
Identification of NPAs, provisioning and reporting
Cental bank audit of banks and reporting on banking activities
Control over branch operations and other POS outlets
Anti money laundering, fraud prevention and anti terrorist
funding measures
6 Sessions of 3
Hours Each
5 Case Studies and Presentations
2 Sessions of 3
Hours Each
Accounting and Bank Audit 100 marks (15 Sessions of 3 Hours Each) Sem I
SL.No Particulars Sessions
1 International Accounting Standards and implementation in India
Banking transaction record keeping, accounting entries for cash
credit, loans, deposits, interest payments, commissions and taxes
3 Sessions
of 3 Hours
Each
2 Maintaining accounts for clients - retail and corporate, multi level
relationship accounts - deposit, loan etc.
Internal and external audit of books of accounts, audit by central
bank, disclosures and management of audit findings, branch audit,
cash audit and accounting closure
3 Sessions
of 3 Hours
Each
3 Provisioning for non performing assets, liabilities, support client
liabilities for cash credit arrangements
Accounting for complex transactions like swaps hedging using
options and futures, foreign letter of credit, factoring etc.
3 Sessions
of 3 Hours
Each
4 Accounting for international bank branch operations located in
foreigh countries - forex transactions, loands and advances
Regulatory reporting requirements, accounting disclosures for
AGM, MIS reporting
Demonstration of banking ledger in software package
4 Sessions
of 3 Hours
Each
5 Case studies and presentations 2 Sessions
of 3 Hours
Each
Reference Text
Bank Accounting & Audit Control – James E Potts – Bankers Publishing Company
Introduction to Risk Management 100 marks (15 Sessions of 3 Hours Each)
Sem I
SL.No Particulars Sessions
1 Risk: Definition
Risk Process – Risk Organisation
Key Risks – Interest Rate Risk, Market Risk, Currency Risk, Credit
Risk, Liquidity Risk, Legal & Operational Risk
4 Sessions
of 3 Hours
Each
2 Risk Measurement & Control
Calculation
Risk Exposure Analysis
Risk Management / Mitigation policy
Risk Immunization Policy / Strategy fixing exposure limits
4 Sessions
of 3 Hours
Each
3 Delegation with accountability
i) Open position
ii) Asset position limit
iii) Deal size
iv) Individual dealer’s limit
v) Stop loss limits
5 Sessions
of 3 Hours
Each
4 Case studies and presentations 2 Sessions
of 3 Hours
Each
Reference Text
Financial Risk Management – Dun & Bradstreet –Tata McGraw Hill Education
Quantitative Risk Management – A Practical Guide to Financial Risk – Wiley Finance
DIPLOMA IN COMMERCIAL BANKING
SEM – II
International Banking 100 marks University Assessment (15 Sessions of 3
Hours Each) Sem II
SL.No Particulars Sessions
1 Global trends and developments in international banking,
international financial institutions - IMF, IBRD, BIS, IFC, ADB,
WTO
2 Sessions
of 3 Hours
Each
2 International trade finance, documentary credit practices,
correspondent banking, routing of documents through banks, credit
against invoice, UCPDC 600, Letter of Credit, endorsing the
documents, legal remedies, recourse to issuer and recovery, seller's
credit, bilateral/ counter trade
2 Sessions
of 3 Hours
Each
3 Factoring services - assignment of invoices, responsibilities of a
factor, pooling and routing of invoices, processing of very high
volumes of transactions, payment and recovery mechanisms
2 Sessions
of 3 Hours
Each
4 Payment mechanisms in international banking transactions, ACH
and other arrangements, foreigh currency transactions, settlement,
reconciliation and fund transfer for cross border transactions
2 Sessions
of 3 Hours
Each
5 Asset liability management to manage foreign currency liabilities on
behalf of clients 1 Session of
3 Hours
Each
6 FEMA and regulatory framework in India, international regulation 1 Session of
3 Hours
Each
7 International loan agreements, covenants and clauses, NRI services,
import financing, payments and remittances in foreign currency 1 Session of
3 Hours
Each
8 Raising international debt, agreements, ECB, FCNR, project/
infrastructure/ long term finance, FDI, loan arrangements through
EXIM Bank
1 Session of
3 Hours
Each
9 Foreign exchange management and regulatory control of central
bank 1 Session of
3 Hours
Each
10 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
International Banking Operations – IIBF – MacMillan Publishers
International Banking – Legal & Regulatory Aspects – IIBF – MacMillan Publishers
International Corporate Finance – IIBF – MacMillan Publishers
Merchant Banking 100 marks (15 Sessions of 3 Hours Each) Sem II
SL.No Particulars Sessions
1 Introduction to merchant banking functions - issue management,
regulatory supervision - Companies Act, SEBI, SERA, FEMA
provisions
2 Sessions
of 3 Hours
Each
2 Project appraisal, costing, means of financing, long term sources -
capital issue, FDI, PE, Venture Capital etc. 2 Sessions
of 3 Hours
Each
3 Entities supporting issue - underwriter, banker to issue, registrar and
brokers 2 Sessions
of 3 Hours
Each
4 Permissions from regulators, issue prospectus, pricing and approval,
book building process, issue management, underwriting arrangement 2 Sessions
of 3 Hours
Each
5 Book building process, green shoe option, private placement with
FIs, MFs, FIIs, etc., Issue of ADR and marketing with FII, NRIs
etc., credit syndication
3 Sessions
of 3 Hours
Each
6 Bought our deals, mergers and acquisitions, sell off and splits 2 Sessions
of 3 Hours
Each
7 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
Merchant Banking – H.R Machiraju – New Age International Publications
The Merchant Bankers – Joseph Wechsberg
Banking Technology & Payment Systems 100 marks (15 Sessions of 3 Hours
Each) Sem II
Banking Technology
SL.No Particulars Sessions
1 Introduction to various process flows in banking transactions,
technology solutions to support these processes
Networking and security concerns in banking technology solutions,
public key infrastructure, SSL layer and other solutions
2 Sessions
of 3 Hours
Each
2 Introduction to solutions used in payment processing, messaging,
document archival, digital signature and fund transfers - RTGS,
IFSC
E-commerce, online banking transactions, confirmation and
payment gateways
1 Session of
3 Hours
Each
3 Credit cards, acquirers, MasterCard, Visa and AMEX networks,
payment processes, commissions, credit card frauds and prevention 1 Session of
3 Hours
Each
4 Core banking solutions, anywhere banking, branch operations
management in core banking environment, approvals, processing,
reconciliation and exception management
1 Session of
3 Hours
Each
5 Technology in delivery channels, data mining, usage and regulatory
restrictions
Disaster recovery, business continuity and roll back of transactions
in case of system failure
2 Sessions
of 3 Hours
Each
6 Threats, viruses and intrusion prevention security policies
1 Session of
3 Hours
Each
Reference Text
Modern Banking Technology by Firdos Temurasp Shroff – Northern Book Centre
Banking Services & Information Technology – R.K Uppal – New Century Publications
Payment Systems
SL.No Particulars Sessions
7 Introduction to instruments used for payment - cheques, DD,
banker's cheque etc.
Holder in due course, cheque collection, clearing and discounting for
early payment
1 Session of
3 Hours
Each
8 Negotiable instruments act, concepts of negotiability, dishonour of
cheques and legal remedies
Electronic payment solutions, service providers, network security,
data security and account data protection
1 Session of
3 Hours
Each
9 Intrusion threats, identity theft, frauds and regulatory framework for
prevention and safety of payment gateways
Credit and debit card transactions, networks, security and protection
of card holder account, credit card defaults
1 Session of
3 Hours
Each
10 Automated clearing mechanish in US, business payments (NACHA)
Federal Reserve regulations - Uniform Commercial Code
1 Session of
3 Hours
Each
11 Emerging trends in electronic payment processing systems - eCash
etc. 1 Session of
3 Hours
Each
12 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
Payment Systems – David B Humphrey – World Bank Publications
Electronic Payment Systems for E – Commerce – Donal O’ Mahony, Michael A Peirce, Hitesh
Tiwari
Payment Systems – James Brook – Aspen Publishers
International Banking Regulations 100 marks (15 Sessions of 3 Hours Each)
Sem II
SL.No Particulars Sessions
1 BASEL II - introduction to credit, market and operational risk,
provisioning and reporting to regulators as per norms 2 Sessions
of 3 Hours
Each
2 AML - Anti Money Laundering - impact on client on-boarding,
surveillance, detection of suspect transactions, bocking and reporting
to authorities
3 Sessions
of 3 Hours
Each
3 FATCA - identification of accounts and investments by US nationals
and reporting to US regulators 3 Sessions
of 3 Hours
Each
4 US - Dodd Frank Act - consumer protection, OTC derivatives to
exchanges, centralised data repository, Swap execution facility
(SEF)
3 Sessions
of 3 Hours
Each
5 Banking regulation in EU, UK and APAC 2 Sessions
of 3 Hours
Each
6 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
International Banking Operations – IIBF – MacMillan Publishers
International Banking – Legal & Regulatory Aspects – IIBF – MacMillan Publishers
International Corporate Finance – IIBF – MacMillan Publishers
Dissertation Project 100 Marks
Scheme of Assessments for Subjects of 100 Marks
The Semester end Examination will be conducted for 60 Marks.
Internal Assessments will be conducted for 40 Marks.
The allocation of 40 marks shall be on the following basis: -
a) Periodical class tests held in the given semester (20 Marks)
b) Presentations throughout the semester (10 Marks)
c) Attendance and Active participation in routine class instructional deliveries (05 Marks)
d) Overall Conduct as a responsible student, mannerism and articulation and exhibition of
leadership qualities in organizing related academic activities. (05 Marks)
Note: A Student has to separately secure minimum 50% marks (i.e 20 out of 40) in the
internal assessments and secure minimum 50% marks (i.e 30 out of 60) in the
Semester End Examination in every subject to be declared as Pass.
Question Paper Pattern for Semester End Examination (60 Marks)
There will be Seven Questions in all.
Q1 would be compulsory and would carry 20 Marks
In addition to Q1, there would be six questions. Each question would carry 10 Marks. Each of
these Six Questions will have three sub – questions and each sub – question would carry 05
Marks
Students have to attempt any four out of the remaining six Questions and within each question;
students have to attempt any two out of three sub – questions.
In all, students have to attempt five questions i.e (Q1+Any Four of the remaining)
Q1 – 20 Marks (Compulsory)
Attempt Any Four out of the Remaining Six Questions
Q2 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q3 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q4 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q5 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q6 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q7 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Credit Based Grading System for One Year Diploma Course
Semester End Examinations
Credit Point:
A Credit Point denotes the quantum of effort required to be put in by a student, who takes
up a course. In other words, it is an index of number of learning hours prescribed for a
certain segment of learning.
Learning Hours
Learning Hours for Subjects of 100 Marks (60+40)
Learning Hours consist of Classroom teaching hours and other complementary learning activities
indicated here below
1) Classroom teaching hours ((15 Sessions X 3 Hours = 45 Hours))
2) Other Complementary learning activities (75 Hours)
The learning activities consist of the following:
Reading, Introspection, Thoughtful Reflection, Group Discussions, Lectures, Field Work,
Workshops, Counseling Sessions, Watching Educational and Informative Videos,
Assignments, Live Projects, Case Studies, Presentations, Preparation for Examinations,
Participation in academic and extra – curricular activities, inculcation of industry specific
skills and training & development sessions.
The total learning hours would be thus equivalent to 45+75=120 Hours for subjects of
100 Marks
Credit Point Computation
One credit is construed as equivalent to 30 learning hours.
Credit completion and Credit accumulation:
Each module of an academic program has been assigned specific credit points defining
successful completion of the course under study.
Credit completion or Credit acquisition may be considered to take place after the learner
has successfully cleared all the evaluation criteria with respect to a single course.
A learner who successfully completes a 4 CP (Credit Point) course is treated to have
collected or acquired 4 credits. His performance above the minimum prescribed level
(viz. grades / marks obtained) has no bearing on the number of credits collected or
acquired.
A learner keeps on accumulating more credits as he completes additional courses.
Introduction of Grading System at the University of Mumbai
A well designed evaluation system that integrates the aforesaid parameters having due attention
to their relative importance in the context of the given academic programme.
What is Grading?
Grading, in the educational context is a method of reporting the result of a learner’s
performance subsequent to his evaluation. It involves a set of alphabets which are clearly
defined and designated and uniformly understood by all the stake holders.
A properly introduced grading system not only provides for a comparison of the learners’
performance but it also indicates the quality of performance with respect to the amount of
efforts put in and the amount of knowledge acquired at the end of the course by the
learners.
The Seven Point Grading System
A series of meetings of all the Deans & Controller of Examinations were held to discuss
the system of grading to be adopted at the post graduate level. Mumbai University,
subsequently in its Academic Council meeting and in its Management Council meeting
resolved to adopt and implement the Seven (07) Point Grading System from the
academic year 2012-13.
The Grade Point and the grade allocation shall be as per the Grade Table given below:
Note: - Consider 1 Grade Point is equal to Zero for CG calculations in respect of failed
learner/s in the concerned course/s.
Conversion of Marks to Grades and Calculations of GPA (Grade
Point Average)
In the Credit and Grade Point System, the assessment of individual Courses in the
concerned examinations will be only on the basis of marks obtained; however these
marks shall be converted later into Grades by a mechanism wherein the overall
performance of the Learners can be reflected by the overall evaluation in terms of
Grades.
Abbreviations used for gradation needs understanding of each and every parameter
involved in grade computation and the evaluation mechanism. The abbreviations and
formulas used are as follows:-
Abbreviations and Formula’s Used:-
G: Grade
GP: Grade Points
C: Credits
CP: Credit Points
CG: Credits X Grades (Product of credits & Grades)
∑CG: Sum of Product of Credits & Grades points
∑C: Sum of Credits points
SGPA = ∑CG
------
∑C
SGPA: Semester Grade Point Average shall be calculated for individual semesters. (It is also
designated as GPA)
CGPA: Cumulative Grade Point Average shall be calculated for the entire Programme by
considering all the semesters taken together.
Special Point to Note:
While calculating the CG the value of Grade Point 1 shall be considered as Zero (0) in case
of learners who failed in the concerned course/s obtaining marks below 50.
After calculating the SGPA for an individual semester and the CGPA for entire programme, the
value can be matched with the grade as given in the Grade Point table as per the Seven (07)
Points Grading System and expressed as a single designated GRADE such as O, A, B, etc….
The SGPA of learners who have failed in one subject or more than one subjects shall not be
calculated.
Illustrations of the Calculations: -
Credit Points and Grading Calculations for First Semester
1 Credit = 30 Learning Hours
Result: - Passing in All Courses with more than 50% Marks
Courses In
Semesters
No of
Learning
Hours
Credits
Per
Course ( C
)
Marks
Obtained
(%)
Grade
Grade
Points
(G)
∑CG =
CxG
SGPA =
∑CG/∑C
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
60 4 55 D 3 12
88/20=4.4
Introduction to
banking 60 4 60 C 4 16
Central bank
functions and
banking
regulations
60 4 70 A 6 24
Accounting and
bank
audit
60 4 80 O 7 28
Introduction to
Risk
Management
60 4 50 E 2 8
Total 480 ∑C=20
Credit Earned = 20 ∑CG =
88 Grade C
Passes
Credit Points and Grading Calculations for First Semester
1 Credit = 30 Learning Hours
Result: - Fails in One Course or More than One Courses with Less than 50% Marks
Courses In Semesters
No of Learning
Hours
Credits Per Course ( C )
Marks Obtained
(%) Grade
Grade Points
(G)
∑CG = CxG
SGPA = ∑CG/∑C
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
60 4 55 D 3 12
--------
Introduction to
banking 60 4 60 C 4 16
Central bank
functions and
banking
regulations
60 4 70 A 6 24
Accounting and
bank
audit
60 4 80 O 7 28
Introduction to
Risk
Management
60 4 45 F 1 0
Total 480 ∑C=20
Credit Earned = 16 ∑CG =80
Grade F Fails
Note: - Consider 1 Grade Point is equal to Zero for CG calculations of failed
learner/s in the concerned course/s.
The student has been awarded 1 Grade Point, even though he has failed in the
subject of Introduction to Risk Management, however, 1 Grade Point is equal to
Zero for CG calculations of failed learner/s in the concerned course/s.
The SGPA has not been calculated as the student has failed.
Diploma in Retail Banking – Semester – I
Sr.
No. Subject
Teaching Hours Assessment Pattern
No. of
Sessions of
90 minutes
No. of
Sessions of
90 minutes
per week
Continu
ous
Assessm
ent
Semester
End
Examinati
on
Total
Marks
Duration
of Theory
Paper
No of
Credits
1
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
30 2
40 UA 60 UA 100 3 4
2 Introduction to
banking 30 2
40 UA
60 UA
100
3
4
3
Central bank
functions and
banking
regulations
30 2
40 UA 60 UA 100 3 4
4
Accounting
and bank
audit
30 2
40 UA 60 UA 100 3 4
5
Wealth
Management
& Alternative
Investments
30 2
40 UA 60 UA 100 3 4
Total No of Credits 20
UA: - University Assessment; IA: - Internal Assessment
Diploma in Retail Banking – Semester – II
Sr.
No. Subject
Teaching Hours Assessment Pattern
No. of
Sessions of
90 minutes
No. of
Sessions of
90 minutes
per week
Continu
ous
Assessm
ent
Semester
End
Examinati
on
Total
Marks
Duration
of Theory
Paper
No of
Credits
1
Financial
Markets,
Products &
Institutions
30 2
40 UA 60 UA 100 3 4
2
Introduction to
Risk
Management
30 2
40 UA
60 UA
100
3
4
3
Microfinance
& Financial
Inclusion
30 2
40 UA 60 UA 100 3 4
4
Banking
Technology &
Payment
Systems
30 2
40 UA 60 UA 100 3 4
5 Dissertation
Project 100 Marks
4
Total No of Credits 20
UA: - University Assessment; IA: - Internal Assessment
Semester Total No of
Credits
Semester I 20
Semester II 20
Total 40
DIPLOMA IN RETAIL BANKING
SEM – I
Introduction to Equity, Fixed Income Securities and Derivatives 100 marks
(15 Sessions of 3 Hours Each) Sem I
Equity
SL.No Particulars Sessions
1 Revisit basics - formation of a company, need for capital
Primary market for raising funds - equity IPO
Steps in issue management - approvals, marketing, underwriting,
regulatory reporting, book building and issue closure
Issue prospectus, reporting to authorities, cash management
Investor's perspective on investment in equities - risk & return,
mutual funds - equity funds and comparison with direct investment
in equity
2 Sessions
of 3 Hours
Each
2 Secondary market - types of orders, functioning in US, EU and India
Corporate actions - dividend, rights, bonus etc.
Latest developments in equity trading – algorithmic analytics etc.
Fundamental analysis - b/s, P&L, ratios, peer and competitor
analysis
Technical analysis - DMA, predictive tools, charts
Introduction to quantitative trading techniques
Types of markets - Auction, Dealer, market making and hybrid, dark
pools, crossing networks, communication networks and other
alternative trading systems (ATS)
1 Session of
3 Hours
Each
3
Recent advances in technology - mobile platforms, co-location etc.
Messaging in post trade pre settlement - Straight Through
Processing (STP), messaging protocols - SWIFT, FIX
Clearing and settlement of equity trades - comparison of regulated
exchanges and over the counter (OTC), margin and risk
management, trade failure, consequences, auction, securities lending
and borrowing
1 Session of
3 Hours
Each
Fixed Income Securities
SL.No Particulars Sessions
4 Revisit basics - formation of a company, need for borrowing,
leverage
Types of bonds - secured, unsecured, Government bonds, Company
debentures, term structure, inflation protected, convertible etc.
Terms used in bond markets - yield, curve, coupon, rating & credit
risk
1 Session of
3 Hours
Each
5 Bond mathematics - time value of money, cash flow based
calculations - NPV, IRR (yield to maturity), convexity, duration and
immunization
Issue of bonds in primary markets - IPO process, placement and
market making
Steps in issue management - approvals, marketing, underwriting,
regulatory reporting, rate structure
Issue prospectus, reporting to authorities, cash flow - liability
management
Investor's perspective on investment in FI - credit risk & return,
Mutual funds - bond funds and comparison with direct investment in
FI, call risk, inflation risk and reinvestment risk
2 Sessions
of 3 Hours
Each
6 Secondary market - types of orders, functioning in US, EU and India
Corporate actions - coupon, processing of convertible warrants
Techniques in FI trading - LIBOR, zero coupon yield curve,
modeling, yield analytics etc.
Fundamental analysis - b/s, P&L, liquidity ratios, peer and
competitor analysis, past history of defaults by the issuer
Clearing and settlement practices in fixed income securities market
2 Sessions
of 3 Hours
Each
Derivatives
SL.No Particulars Sessions
7 Forwards - characteristics, OTC markets where forwards are used,
risk management in absence of central counterparty, flexibility in
customized contracts and disadvantages in trading such contracts
Futures - standardization over forwards, regulated markets where the
futures are traded, financial and non financial futures contracts,
terms and conditions, daily mark to market as risk management
mechanism, pricing of futures, how the futures price tends to spot
price towards maturity, delivery mechanisms for settlement
Options - types of options - put and call, buyers and sellers of
options, trading in options contracts, margin for risk management,
settlement practices for exercised options, effect of corporate action
on options, option chains, open interest, calculation of option price
(basics of Black and Scholes model), strike price, intrinsic and time
value of options, option risk - return charts, greeks and basic
calculations
Swaps - interest rate, forex, equity-fixed income swaps, OTS swap
transactions, how banks act as intermediaries for swaps, cash flow
management, resets and calculations
2 Sessions
of 3 Hours
Each
8 Mutual funds - asset management company, MF trust, issue of units,
distribution channels, cash flow management for open ended funds,
types of schemes - open-close, growth-sectoral-equity-fixed income
etc., MF ratings, entry-exit loads, how ETF differs from MF, NAV
calculation, regulation of mutual funds - SEBI and SEC
Foreign currency as investment asset class, derivatives on foreign
exchange rates, hedging, bid-offer spreads, simple calculations
Insurance - life and non life insurance schemes, riders, actuarial
basics, regulation of insurance sector, asset liability and risk
management for insurance companies, premium collection and
bonus distribution
3 Sessions
of 3 Hours
Each
SL.No Particulars Sessions
9 Pension funds - defined benefit, defined contribution funds,
employee and employer contributions, investment of pension fund
investments, regulation, differed tax schemes, types of pension funds
in US and UK
3 Sessions
of 3 Hours
Each
Mortgage backed securites - asset (receivable) pooling, formation of
a trust company, selling of pooled assets, creation of securities,
selling and distribution to retail investors, senior tranches,
repayment risk, how the mortgage market triggered the collapse in
US in 2009-10
Other asset classes - alternative investments, hedge funds, private
equity, investment in collectibles - art, wine etc.
10 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text:
The Hand Book of Fixed Income Securities- Fabozzi Frank McGraw Hill
International.
Fixed Income Markets & Their Derivatives: Suresh Sunderasan –Thomson
Learning.
Swaps : Richard Flavell – John Wiley Publications.
Security Analysis and Portfolio Management (6th Edn.) By Donald Fischer and Ronald
Jordan, Prentice Hall of India (1995)
Securities Analysis and Portfolio Management , Prasanna Chandra, Tata McGraw Hill
(2002)
Options, Future & Other Derivatives – by John. C.Hull
Applied Derivatives – Richard .J. Rendleman, Jr
Special Focus on:
Chap: 2 -- PUT – CALL Parity
Chap : 3 & 4 -- Binomial Option Pricing Models
Option Volatility & Pricing – Sheldon Naten Berg
Introduction to Banking 100 marks (15 Sessions of 3 Hours Each) Sem I
Reference Text:
1. Banking in the new Millennium by ICFAI University banking series edited by N
SL no Particulars Sessions
1. Introduction to Banking
Role of banks in an economy 2 sessions of 3
hours
2 Structure, growth and development of banking in India 1 session of 3
hours
3 Study of bank balance sheet and profit and loss account
Treasury and funds management in banks 2 sessions of 3
hours
4 Risk management in Banks
Assets liability management in banks 2 sessions of 3
hours
5 Regulatory role of RBI and its monitory policy 1 session of 3
hours
6 Cooperative banks, RRB’s and rural banking in India 1 session of 3
hours
7 Special issues in Indian banking sector
Narasimham committee report
Basel II
Assets Reconstruction Companies
Securitization Act
3 sessions of 3
hours
8 Consolidation In Indian banking sector 1 session of 3
hours
9 Case studies and Presentations 2 sessions of 3
hours
Rajashekar, Year 2001.
2. Banking Strategy by ICFAI University banking series edited by Katuri Nageshwara Rao,
Year 2002.
3. Central Banking by Charles Goodhart
4. International Corporate and Investment Banking : Practice and Law by Largan Mark,
UK/Institute of Financial Services/2003
5. European Banking and Financial Services Law by Gerster /Schwander,
Netherland/Kluwer Law Int/2004
6. Banking Supervision and Systemic Bank Restructuring : An International and
Comparative Legal Perspective - By Mwenda Kenneeth Kaoma, London/Cavendis Pub/2000.
7. Risk Management in Banking- 2nd ,By Bessis Joel, Chichester/John Wiley/2004.
8. Commercial Banking : The Management of Risk-2nd By Frster Donald R/Gup Benton
E/Kolari James W, Australia/South-Western/2001.
9. Strategic Business Management and Banking, By Sarkar A N, New Delhi Deep&Deep/2005/.
Central Bank Functions & Banking Regulations 100 marks (15 Sessions of 3
Hours Each) Sem I
SL.
No
Particulars Sessions
1 Central Bank Functions
PART I : The Fundamentals 2 Sessions of 3 Hours Each
The Scope & Subject Matter of Macroeconomics
An Introduction to the Economics of Growth & Development
An Introduction to the Indian Economy - Its Salient Features 2 Sessions of 3 Hours Each
2 Session of 3
Hours Each
2
PART II: The Economic Markets
The Money Market & the Role of Central Banking
How does Commercial Banking Effect Industry & Business
2 Sessions of 3
Hours Each
3 PART III: World Economy and Banking
The World Bank, and IMF conditionalities leading to the liberalisation - privatization -
globalisation exercise and beyond.
Responsibilities of Central Bank - RBI, Federal Board of US
Foreign exchange market, balance of payment and reporing to central
bank
Inflation management and control over money supply using
Government bonds
Developmental measures supported by banking sector
3 Sessions of 3
Hours Each
Reference Text:
1. Banking in the new Millennium by ICFAI University banking series edited by N
Rajashekar, Year 2001.
2. Banking Strategy by ICFAI University banking series edited by Katuri Nageshwara Rao,
Year 2002.
3. Central Banking by Charles Goodhart
4. International Corporate and Investment Banking : Practice and Law by Largan Mark,
UK/Institute of Financial Services/2003
5. European Banking and Financial Services Law by Gerster /Schwander,
Netherland/Kluwer Law Int/2004
6. Banking Supervision and Systemic Bank Restructuring : An International and
Comparative Legal Perspective - By Mwenda Kenneeth Kaoma, London/Cavendis Pub/2000.
7. Risk Management in Banking- 2nd ,By Bessis Joel, Chichester/John Wiley/2004.
8. Commercial Banking : The Management of Risk-2nd By Frster Donald R/Gup Benton
E/Kolari James W, Australia/South-Western/2001.
9. Strategic Business Management and Banking, By Sarkar A N, New Delhi Deep&Deep/2005/.
10. Management of Banking & Financial Services – Justin Paul & Padmalatha Suresh – Pearson
Education
11. Principles and Practices of Banking – Indian Institute of Quantitative Finance – MacMillan
Publishers
12.Banking Law & Practice – P.N Varshney
13.Banking Law & Practice – R.K Gupta
4 Banking Regulation
Evolution of banking sector - historical perspective
Regulatory arrangements in different countries - Cental Banking and
Government
Central bank supervision over different types of banks
Statutory requirements - liquidity ratios, subscriptions to Government
bond issues
Evolution of regulation through various crisis situations
Introduction to BASEL II norms for risk identification and
provisioning
Identification of NPAs, provisioning and reporting
Cental bank audit of banks and reporting on banking activities
Control over branch operations and other POS outlets
Anti money laundering, fraud prevention and anti terrorist
funding measures
6 Sessions of 3
Hours Each
5 Case Studies and Presentations
2 Sessions of 3
Hours Each
Accounting and Bank Audit 100 marks (15 Sessions of 3 Hours Each) Sem I
SL.No Particulars Sessions
1 International Accounting Standards and implementation in India
Banking transaction record keeping, accounting entries for cash
credit, loans, deposits, interest payments, commissions and taxes
3 Sessions
of 3 Hours
Each
2 Maintaining accounts for clients - retail and corporate, multi level
relationship accounts - deposit, loan etc.
Internal and external audit of books of accounts, audit by central
bank, disclosures and management of audit findings, branch audit,
cash audit and accounting closure
3 Sessions
of 3 Hours
Each
3 Provisioning for non performing assets, liabilities, support client
liabilities for cash credit arrangements
Accounting for complex transactions like swaps hedging using
options and futures, foreign letter of credit, factoring etc.
3 Sessions
of 3 Hours
Each
4 Accounting for international bank branch operations located in
foreigh countries - forex transactions, loands and advances
Regulatory reporting requirements, accounting disclosures for
AGM, MIS reporting
Demonstration of banking ledger in software package
4 Sessions
of 3 Hours
Each
5 Case studies and presentations 2 Sessions
of 3 Hours
Each
Reference Text
Bank Accounting & Audit Control – James E Potts – Bankers Publishing Company
Wealth Management and Alternative Investments 100 marks (15 Sessions of
3 Hours Each) Sem I
Wealth Management
SL.No Particulars Sessions
1 Functions of investment advisor, independent advisors, wire house
wealth managers, custodians offering white labled solutions to
advisors, software solutions for advisors
Wealth management client categories - mass affluent, high net
worth, ultra high net worth, unified households
2 Sessions
of 3 Hours
Each
2 Client on boarding - profiling, financial planning, suitability
assessment - aggressive, moderate etc., client preferences,
restrictions, return expectations versus risk appetite
Structure the cash flow forecasting and define the goals, milestones,
liabilities etc.
1 Session of
3 Hours
Each
3
Types of wealth management account structures - separately
managed accounts, unified managed accounts, overlay portfolio
management, sleeves and open architecture wealth management,
portfolio manager models, pooled funds
Technology absorption in wealth management - use of social media
in wealth management, mobility solutions and advantages to
investment advisors
2 Sessions
of 3 Hours
Each
4 Asset allocation, active passive investment styles - advantages,
correlation in security returns and risk diversification, standard
deviation of each asset class and security
Portfolio modeling using multiple asset classes, monitoring
tolerances and rebalancing, substitution rules
Portfolio performance measurement, attribution and reporting
2 Sessions
of 3 Hours
Each
Alternative Investments
SL.No Particulars Sessions
5 Hedge funds - concept, strategies, debacle of hedge funds in 2009-
10 market crisis, how hedge funds employed quantitative methods to
generate alpha, how regulation caught up with the hedge fund
industry
2 Sessions
of 3 Hours
Each
6 Private equity - structuring of deals, calls and commitments,
investment strategies, water fall model for distribution of returns,
liquidation of investments and risk-return pay off
1 Session of
3 Hours
Each 7 Exchange traded funds - creation of ETF, deposition of assets,
selling of units, market making, trading in ETF units, liquidation of
ETF, types of ETFs, regulation of ETF
1 Session of
3 Hours
Each 8 Investment in real estate as an asset class, constraints, risk and
return, Government regulation, capital gains and taxation
Other alternative investment asset classes - collectibles - art, art
investment funds, valuation, protection, wine, storage, liquidation,
diamonds, mines and forests
2 Sessions
of 3 Hours
Each
9 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text:
ICICI Notes on Wealth Management
Wealth Management – Harold R Evensky
DIPLOMA IN RETAIL BANKING
SEM – II
Financial Markets, Products & Institutions 100 marks (15 Sessions of 3
Hours Each) Sem II
SL.No Particulars Sessions
1 Financial Markets
Primary and Secondary Market
OTC and Exchange markets
Financial Securities Market Operations
Financial market activities - Speculation, Hedging and Arbitrage
2 Sessions
of 3 Hours
Each
2 Financial Institutions
Stock and Other Exchanges
Clearing House Mechanisms and Clearing Corporations
Commercial Banks and Investment Banks
Broking Houses
PMS, Hedge Funds
Mutual Funds and Insurance Firms
Other types of Financial Institutions
2 Sessions
of 3 Hours
Each
3 Financial Instruments
Equity
Debt
Derivatives - Forwards, Futures and Options
Equity and Equity Index derivatives
Fixed-Income and Interest Rate Derivatives
Currency Derivatives
Commodity Derivatives
Swaps and Swap options
Mortgages and MBS
2 Sessions
of 3 Hours
Each
4 Fixed Income Instruments
Time Value of Money
Bond Characteristics
Bond Types - Sovereign, Municipal, Agency, Corporate, etc.
Coupon Types - Zero Coupon, Fixed Rate Coupon, Floating Rate
Coupon
Risk-free Rate of Interest
Term Structure of Interest Rates
Yield to Maturity (YTM)
Bond Pricing Using Yield-to-Maturity (YTM)
Estimation of YTM from market data
Spot Rates / Zero Coupon Yield (ZCY)
Bond Pricing using ZCYC curve
Bootstrapping ZCYC from YTMC
Forward Rates
Yield Curve construction using methods like: bootstrapping, linear
interpolation, polynomial interpolations.
5 Sessions
of 3 Hours
Each
Pricing Floaters and Inverse Floaters
Fixed Income & Money Market returns : Coupon Rate, Current
Yield, Yield-To-Maturity, Discount Yield, Money Market Yield, Par
Yield, Bond-equivalent Yield, Yield-To-Call/Yield-To-Put
Price Yield Relationship
5 Fixed Income Risk Measures
Bond Duration, Modified Duration
Bond Convexity
Price Value of Basis Point (PVBP)
2 Sessions
of 3 Hours
Each
7 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text:
1. Financial Markets and Institutions by Anthony Saunders- Tata McGraw Hill Publication
2. SEBI Guidelines (available on net) on Mutual funds.
3. Handouts / Soft copies (‘Excel bond’) on some topics like Bond Mathematics, Portfolio
Management, Evaluation of Mutual Fund performance etc will be given.
4. Financial Institutions & Markets – Meir Kohn – Oxford Publications
5. Indian Financial System – Dr S.C Bihari – International Book House Ltd
6. Financial Markets & Institutions – Fredric S Mishkin, Stanley G Eakins – Pearson
Publications
Introduction to Risk Management 100 marks (15 Sessions of 3 Hours Each)
Sem II
SL.No Particulars Sessions
1 Risk: Definition
Risk Process – Risk Organisation
Key Risks – Interest Rate Risk, Market Risk, Currency Risk, Credit
Risk, Liquidity Risk, Legal & Operational Risk
4 Sessions
of 3 Hours
Each
2 Risk Measurement & Control
Calculation
Risk Exposure Analysis
Risk Management / Mitigation policy
Risk Immunization Policy / Strategy fixing exposure limits
4 Sessions
of 3 Hours
Each
3 Delegation with accountability
i) Open position
ii) Asset position limit
iii) Deal size
iv) Individual dealer’s limit
v) Stop loss limits
5 Sessions
of 3 Hours
Each
4 Case studies and presentations 2 Sessions
of 3 Hours
Each
Reference Text
Financial Risk Management – Dun & Bradstreet –Tata McGraw Hill Education
Quantitative Risk Management – A Practical Guide to Financial Risk – Wiley Finance
Microfinance & Financial Inclusion 100 marks (15 Sessions of 3 Hours Each)
Sem II
SL.No Particulars Sessions
1 Introduction to microfinance 1 Session of
3 Hours
Each
2 Innovative models to support development 1 Session of
3 Hours
Each
3 Regulatory framework to deal with microfinance credit and
transactions 1 Session of
3 Hours
Each
4 Financial services offered to support microfinance initiatives 2 Sessions
of 3 Hours
Each
5 Evaluation of microfinance initiatives - profitability and efficiency 2 Sessions
of 3 Hours
Each
6 Loan disbursement and repayment schedules to suit the model 2 Sessions
of 3 Hours
Each
7 Risk management for microfinance 1 Session of
3 Hours
Each
8 Delinquancy issues in microfinance 1 Session of
3 Hours
Each
9 Example of microfinance models 2 Sessions
of 3 Hours
Each
10 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
Microfinance and Financial Inclusion – S.Teki and R.K Mishra – Academic Press
Banking Technology & Payment Systems 100 marks (15 Sessions of 3 Hours
Each) Sem II
Banking Technology
SL.No Particulars Sessions
1 Introduction to various process flows in banking transactions,
technology solutions to support these processes
Networking and security concerns in banking technology solutions,
public key infrastructure, SSL layer and other solutions
2 Sessions
of 3 Hours
Each
2 Introduction to solutions used in payment processing, messaging,
document archival, digital signature and fund transfers - RTGS,
IFSC
E-commerce, online banking transactions, confirmation and
payment gateways
1 Session of
3 Hours
Each
3 Credit cards, acquirers, MasterCard, Visa and AMEX networks,
payment processes, commissions, credit card frauds and prevention 1 Session of
3 Hours
Each
4 Core banking solutions, anywhere banking, branch operations
management in core banking environment, approvals, processing,
reconciliation and exception management
1 Session of
3 Hours
Each
5 Technology in delivery channels, data mining, usage and regulatory
restrictions
Disaster recovery, business continuity and roll back of transactions
in case of system failure
2 Sessions
of 3 Hours
Each
6 Threats, viruses and intrusion prevention security policies
1 Session of
3 Hours
Each
Reference Text
Modern Banking Technology by Firdos Temurasp Shroff – Northern Book Centre
Banking Services & Information Technology – R.K Uppal – New Century Publications
Payment Systems
SL.No Particulars Sessions
7 Introduction to instruments used for payment - cheques, DD,
banker's cheque etc.
Holder in due course, cheque collection, clearing and discounting for
early payment
1 Session of
3 Hours
Each
8 Negotiable instruments act, concepts of negotiability, dishonour of
cheques and legal remedies
Electronic payment solutions, service providers, network security,
data security and account data protection
1 Session of
3 Hours
Each
9 Intrusion threats, identity theft, frauds and regulatory framework for
prevention and safety of payment gateways
Credit and debit card transactions, networks, security and protection
of card holder account, credit card defaults
1 Session of
3 Hours
Each
10 Automated clearing mechanish in US, business payments (NACHA)
Federal Reserve regulations - Uniform Commercial Code
1 Session of
3 Hours
Each
11 Emerging trends in electronic payment processing systems - eCash
etc. 1 Session of
3 Hours
Each
12 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
Payment Systems – David B Humphrey – World Bank Publications
Electronic Payment Systems for E – Commerce – Donal O’ Mahony, Michael A Peirce, Hitesh
Tiwari
Payment Systems – James Brook – Aspen Publishers
Dissertation Project 100 Marks
Scheme of Assessments for Subjects of 100 Marks
The Semester end Examination will be conducted for 60 Marks.
Internal Assessments will be conducted for 40 Marks.
The allocation of 40 marks shall be on the following basis: -
e) Periodical class tests held in the given semester (20 Marks)
f) Presentations throughout the semester (10 Marks)
g) Attendance and Active participation in routine class instructional deliveries (05 Marks)
h) Overall Conduct as a responsible student, mannerism and articulation and exhibition of
leadership qualities in organizing related academic activities. (05 Marks)
Note: A Student has to separately secure minimum 50% marks (i.e 20 out of 40) in the
internal assessments and secure minimum 50% marks (i.e 30 out of 60) in the
Semester End Examination in every subject to be declared as Pass.
Question Paper Pattern for Semester End Examination (60 Marks)
There will be Seven Questions in all.
Q1 would be compulsory and would carry 20 Marks
In addition to Q1, there would be six questions. Each question would carry 10 Marks. Each of
these Six Questions will have three sub – questions and each sub – question would carry 05
Marks
Students have to attempt any four out of the remaining six Questions and within each question;
students have to attempt any two out of three sub – questions.
In all, students have to attempt five questions i.e (Q1+Any Four of the remaining)
Q1 – 20 Marks (Compulsory)
Attempt Any Four out of the Remaining Six Questions
Q2 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q3 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q4 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q5 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q6 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q7 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Credit Based Grading System for One Year Diploma Course
Semester End Examinations
Credit Point:
A Credit Point denotes the quantum of effort required to be put in by a student, who takes
up a course. In other words, it is an index of number of learning hours prescribed for a
certain segment of learning.
Learning Hours
Learning Hours for Subjects of 100 Marks (60+40)
Learning Hours consist of Classroom teaching hours and other complementary learning activities
indicated here below
3) Classroom teaching hours ((15 Sessions X 3 Hours = 45 Hours))
4) Other Complementary learning activities (75 Hours)
The learning activities consist of the following:
Reading, Introspection, Thoughtful Reflection, Group Discussions, Lectures, Field Work,
Workshops, Counseling Sessions, Watching Educational and Informative Videos,
Assignments, Live Projects, Case Studies, Presentations, Preparation for Examinations,
Participation in academic and extra – curricular activities, inculcation of industry specific
skills and training & development sessions.
The total learning hours would be thus equivalent to 45+75=120 Hours for subjects of
100 Marks
Credit Point Computation
One credit is construed as equivalent to 30 learning hours.
Credit completion and Credit accumulation:
Each module of an academic program has been assigned specific credit points defining
successful completion of the course under study.
Credit completion or Credit acquisition may be considered to take place after the learner
has successfully cleared all the evaluation criteria with respect to a single course.
A learner who successfully completes a 4 CP (Credit Point) course is treated to have
collected or acquired 4 credits. His performance above the minimum prescribed level
(viz. grades / marks obtained) has no bearing on the number of credits collected or
acquired.
A learner keeps on accumulating more credits as he completes additional courses.
Introduction of Grading System at the University of Mumbai
A well designed evaluation system that integrates the aforesaid parameters having due attention
to their relative importance in the context of the given academic programme.
What is Grading?
Grading, in the educational context is a method of reporting the result of a learner’s
performance subsequent to his evaluation. It involves a set of alphabets which are clearly
defined and designated and uniformly understood by all the stake holders.
A properly introduced grading system not only provides for a comparison of the learners’
performance but it also indicates the quality of performance with respect to the amount of
efforts put in and the amount of knowledge acquired at the end of the course by the
learners.
The Seven Point Grading System
A series of meetings of all the Deans & Controller of Examinations were held to discuss
the system of grading to be adopted at the post graduate level. Mumbai University,
subsequently in its Academic Council meeting and in its Management Council meeting
resolved to adopt and implement the Seven (07) Point Grading System from the
academic year 2012-13.
The Grade Point and the grade allocation shall be as per the Grade Table given below:
Note: - Consider 1 Grade Point is equal to Zero for CG calculations in respect of failed
learner/s in the concerned course/s.
Conversion of Marks to Grades and Calculations of GPA (Grade
Point Average)
In the Credit and Grade Point System, the assessment of individual Courses in the
concerned examinations will be only on the basis of marks obtained; however these
marks shall be converted later into Grades by a mechanism wherein the overall
performance of the Learners can be reflected by the overall evaluation in terms of
Grades.
Abbreviations used for gradation needs understanding of each and every parameter
involved in grade computation and the evaluation mechanism. The abbreviations and
formulas used are as follows:-
Abbreviations and Formula’s Used:-
G: Grade
GP: Grade Points
C: Credits
CP: Credit Points
CG: Credits X Grades (Product of credits & Grades)
∑CG: Sum of Product of Credits & Grades points
∑C: Sum of Credits points
SGPA = ∑CG
------
∑C
SGPA: Semester Grade Point Average shall be calculated for individual semesters. (It is also
designated as GPA)
CGPA: Cumulative Grade Point Average shall be calculated for the entire Programme by
considering all the semesters taken together.
Special Point to Note:
While calculating the CG the value of Grade Point 1 shall be considered as Zero (0) in case
of learners who failed in the concerned course/s obtaining marks below 50.
After calculating the SGPA for an individual semester and the CGPA for entire programme, the
value can be matched with the grade as given in the Grade Point table as per the Seven (07)
Points Grading System and expressed as a single designated GRADE such as O, A, B, etc….
The SGPA of learners who have failed in one subject or more than one subjects shall not be
calculated.
Illustrations of the Calculations: -
Credit Points and Grading Calculations for First Semester
1 Credit = 30 Learning Hours
Result: - Passing in All Courses with more than 50% Marks
Courses In
Semesters
No of
Learning
Hours
Credits
Per
Course ( C
)
Marks
Obtained
(%)
Grade
Grade
Points
(G)
∑CG =
CxG
SGPA =
∑CG/∑C
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
60 4 55 D 3 12
88/20=4.4
Introduction to
banking 60 4 60 C 4 16
Central bank
functions and
banking
regulations
60 4 70 A 6 24
Accounting and
bank
audit
60 4 80 O 7 28
Wealth
Management &
Alternative
Investments
60 4 50 E 2 8
Total 480 ∑C=20
Credit Earned = 20 ∑CG =
88 Grade C
Passes
Credit Points and Grading Calculations for First Semester
1 Credit = 30 Learning Hours
Result: - Fails in One Course or More than One Courses with Less than 50% Marks
Courses In Semesters
No of Learning
Hours
Credits Per Course ( C )
Marks Obtained
(%) Grade
Grade Points
(G)
∑CG = CxG
SGPA = ∑CG/∑C
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
60 4 55 D 3 12
--------
Introduction to
banking 60 4 60 C 4 16
Central bank
functions and
banking
regulations
60 4 70 A 6 24
Accounting and
bank
audit
60 4 80 O 7 28
Wealth
Management &
Alternative
Investments
60 4 45 F 1 0
Total 480 ∑C=20
Credit Earned = 16 ∑CG =80
Grade F Fails
Note: - Consider 1 Grade Point is equal to Zero for CG calculations of failed
learner/s in the concerned course/s.
The student has been awarded 1 Grade Point, even though he has failed in the
subject of Wealth Management & Alternative Investments, however, 1 Grade Point
is equal to Zero for CG calculations of failed learner/s in the concerned course/s.
The SGPA has not been calculated as the student has failed.
Diploma in Capital Markets – Semester – I
Sr.
No. Subject
Teaching Hours Assessment Pattern
No. of
Sessions of
90 minutes
No. of
Sessions of
90 minutes
per week
Continu
ous
Assessm
ent
Semester
End
Examinati
on
Total
Marks
Duration
of Theory
Paper
No of
Credits
1
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
30 2
40 UA 60 UA 100 3 4
2 Capital
Markets 30 2
40 UA
60 UA
100
3
4
3
Security
Analysis &
Portfolio
Management
30 2
40 UA 60 UA 100 3 4
4
Entities in
Financial
Services World
& Role of a
Finance
Executive
30 2
40 UA 60 UA 100 3 4
5
Analysis of
Financial
Statements
30 2
40 UA 60 UA 100 3 4
Total No of Credits 20
UA: - University Assessment; IA: - Internal Assessment
Diploma in Capital Markets – Semester – II
Sr.
No. Subject
Teaching Hours Assessment Pattern
No. of
Sessions of
90 minutes
No. of
Sessions of
90 minutes
per week
Continu
ous
Assessm
ent
Semester
End
Examinati
on
Total
Marks
Duration
of Theory
Paper
No of
Credits
1
Regulation of
Financial
Services
Companies
30 2
40 UA 60 UA 100 3 4
2
Introduction to
Risk
Management
30 2
40 UA
60 UA
100
3
4
3
Derivatives
Products &
Strategies
30 2
40 UA 60 UA 100 3 4
4 Commodities
Market 30 2
40 UA 60 UA 100 3 4
5 Dissertation
Project 100 Marks
4
Total No of Credits 20
UA: - University Assessment; IA: - Internal Assessment
Semester Total No of
Credits
Semester I 20
Semester II 20
Total 40
DIPLOMA IN CAPITAL MARKETS
SEM – I
Introduction to Equity, Fixed Income Securities and Derivatives 100 marks
(15 Sessions of 3 Hours Each) Sem I
Equity
SL.No Particulars Sessions
1 Revisit basics - formation of a company, need for capital
Primary market for raising funds - equity IPO
Steps in issue management - approvals, marketing, underwriting,
regulatory reporting, book building and issue closure
Issue prospectus, reporting to authorities, cash management
Investor's perspective on investment in equities - risk & return,
mutual funds - equity funds and comparison with direct investment
in equity
2 Sessions
of 3 Hours
Each
2 Secondary market - types of orders, functioning in US, EU and India
Corporate actions - dividend, rights, bonus etc.
Latest developments in equity trading – algorithmic analytics etc.
Fundamental analysis - b/s, P&L, ratios, peer and competitor
analysis
Technical analysis - DMA, predictive tools, charts
Introduction to quantitative trading techniques
Types of markets - Auction, Dealer, market making and hybrid, dark
pools, crossing networks, communication networks and other
alternative trading systems (ATS)
1 Session of
3 Hours
Each
3
Recent advances in technology - mobile platforms, co-location etc.
Messaging in post trade pre settlement - Straight Through
Processing (STP), messaging protocols - SWIFT, FIX
Clearing and settlement of equity trades - comparison of regulated
exchanges and over the counter (OTC), margin and risk
management, trade failure, consequences, auction, securities lending
and borrowing
1 Session of
3 Hours
Each
Fixed Income Securities
SL.No Particulars Sessions
4 Revisit basics - formation of a company, need for borrowing,
leverage
Types of bonds - secured, unsecured, Government bonds, Company
debentures, term structure, inflation protected, convertible etc.
Terms used in bond markets - yield, curve, coupon, rating & credit
risk
1 Session of
3 Hours
Each
5 Bond mathematics - time value of money, cash flow based
calculations - NPV, IRR (yield to maturity), convexity, duration and
immunization
Issue of bonds in primary markets - IPO process, placement and
market making
Steps in issue management - approvals, marketing, underwriting,
regulatory reporting, rate structure
Issue prospectus, reporting to authorities, cash flow - liability
management
Investor's perspective on investment in FI - credit risk & return,
Mutual funds - bond funds and comparison with direct investment in
FI, call risk, inflation risk and reinvestment risk
2 Sessions
of 3 Hours
Each
6 Secondary market - types of orders, functioning in US, EU and India
Corporate actions - coupon, processing of convertible warrants
Techniques in FI trading - LIBOR, zero coupon yield curve,
modeling, yield analytics etc.
Fundamental analysis - b/s, P&L, liquidity ratios, peer and
competitor analysis, past history of defaults by the issuer
Clearing and settlement practices in fixed income securities market
2 Sessions
of 3 Hours
Each
Derivatives
SL.No Particulars Sessions
7 Forwards - characteristics, OTC markets where forwards are used,
risk management in absence of central counterparty, flexibility in
customized contracts and disadvantages in trading such contracts
Futures - standardization over forwards, regulated markets where the
futures are traded, financial and non financial futures contracts,
terms and conditions, daily mark to market as risk management
mechanism, pricing of futures, how the futures price tends to spot
price towards maturity, delivery mechanisms for settlement
Options - types of options - put and call, buyers and sellers of
options, trading in options contracts, margin for risk management,
settlement practices for exercised options, effect of corporate action
on options, option chains, open interest, calculation of option price
(basics of Black and Scholes model), strike price, intrinsic and time
value of options, option risk - return charts, greeks and basic
calculations
Swaps - interest rate, forex, equity-fixed income swaps, OTS swap
transactions, how banks act as intermediaries for swaps, cash flow
management, resets and calculations
2 Sessions
of 3 Hours
Each
8 Mutual funds - asset management company, MF trust, issue of units,
distribution channels, cash flow management for open ended funds,
types of schemes - open-close, growth-sectoral-equity-fixed income
etc., MF ratings, entry-exit loads, how ETF differs from MF, NAV
calculation, regulation of mutual funds - SEBI and SEC
Foreign currency as investment asset class, derivatives on foreign
exchange rates, hedging, bid-offer spreads, simple calculations
Insurance - life and non life insurance schemes, riders, actuarial
basics, regulation of insurance sector, asset liability and risk
management for insurance companies, premium collection and
bonus distribution
3 Sessions
of 3 Hours
Each
SL.No Particulars Sessions
9 Pension funds - defined benefit, defined contribution funds,
employee and employer contributions, investment of pension fund
investments, regulation, differed tax schemes, types of pension funds
in US and UK
Mortgage backed securites - asset (receivable) pooling, formation of
a trust company, selling of pooled assets, creation of securities,
selling and distribution to retail investors, senior tranches,
repayment risk, how the mortgage market triggered the collapse in
US in 2009-10
Other asset classes - alternative investments, hedge funds, private
equity, investment in collectibles - art, wine etc.
3 Sessions
of 3 Hours
Each
10 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text:
The Hand Book of Fixed Income Securities- Fabozzi Frank McGraw Hill
International.
Fixed Income Markets & Their Derivatives: Suresh Sunderasan –Thomson
Learning.
Swaps : Richard Flavell – John Wiley Publications.
Security Analysis and Portfolio Management (6th Edn.) By Donald Fischer and Ronald
Jordan, Prentice Hall of India (1995)
Securities Analysis and Portfolio Management , Prasanna Chandra, Tata McGraw Hill
(2002)
Options, Future & Other Derivatives – by John. C.Hull
Applied Derivatives – Richard .J. Rendleman, Jr
Special Focus on:
Chap: 2 -- PUT – CALL Parity
Chap : 3 & 4 -- Binomial Option Pricing Models
Option Volatility & Pricing – Sheldon Naten Berg
Capital Markets 100 marks (15 Sessions of 3 Hours Each) Sem I
SL.No Particulars Sessions
1 Functioning of a security exchange, auction, quote driven, hybrid,
central counterparty and assurance of safe settlement
Securities process flow - order placement, matching, confirmation,
T-T+1-T+2 activities
2 Sessions
of 3 Hours
Each
2 Front - middle and back office responsibilities to ensure settlement,
trade failure and correction mechanisms
Pre and post trade compliance, alerts, warnings, overrides, approval
workflows, investor-institutional-regulatory compliance
requirements, breach reporting, substitution
3 Sessions
of 3 Hours
Each
3
Post trade messaging - SWIFT format, investment manager and
broker functions, straight through processing service providers
Securities lending borrowing, automation in this process, effect of
corporate action, settlement of borrowing transactions, commissions
and charges
3 Sessions
of 3 Hours
Each
4 Reconciliation requirements, cash and securities exception
processing
Clearing, member functions and responsibilities
3 Sessions
of 3 Hours
Each
5 Settlement - custodian, back office and broker responsibilities, cash
settled transactions, physically settled transaction process flow
Comparison of processes followed in US, UK and Asia
2 Sessions
of 3 Hours
Each
6 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
Capital Markets – Dr S Gurusamy – McGraw Hill Education
Capital Markets Institutions and Instruments – Frank J. Fabozzi, Franco Modigliani, Pearson
Education
Security Analysis and Portfolio Management 15 Sessions of 3 Hours 100
Marks Sem I
SL.No Particulars Sessions
1 Risk And Return
Risk and return in each asset class - equity, fixed income, MF etc.
· Simple determination of stock market price using time value of
money - simple one
period and multi period case.
· Return on common stock under uncertainty, for a single stock
Expected Return,
Variance of Return, Concept of probability Distribution of Returns.
· Co-movement of two Assets returns, Measuring of Covariance
definition and Simple
Numerical Example, Correlation Coefficient
· Two asset portfolio case, expected return and variance of returns of
a Two asset
Portfolio Simple Numerical Example and Graphical Illustration
· Diversification of Risk, Systematic and Unsystematic risk
2 Sessions
of 3 Hours
2 MODERN PORTFOLIO THEORY
· General N-asset Portfolio Problem, Marches Model: Objectives
Function and Constraints,
Meaning of Efficient Frontier / Set, Concept of CML (Capital
Market Line), Concept of
Market Portfolio, Risk Free rate, Borrowing and Lending rates.
2 Sessions
of 3 Hours
3 SHARP'S SINGLE INDEX OR MARKET MODEL:
· How Asset Returns move with the market.
· Slope of security Market Line (SML)
· Properties of any asset on the line.
· Assumptions and some empirical evidence of CAPM
· Arbitrage pricing theory - Introduction
2 Sessions
of 3 Hours
Reference Text:
1. Security Analysis and Portfolio Management (6th Edn.) By Donald Fischer and Ronald
Jordan, Prentice Hall of India (1995)
2. Securities Analysis and Portfolio Management , Prasanna Chandra, Tata McGraw Hill
(2002 )
4 CAPITAL ASSET PRICING MODEL:
· Statement of CAPM.
· Slope of security Market Line (SML)
· Properties of any asset on the line.
· Assumptions and some empirical evidence of CAPM
· Arbitrage pricing theory – Introduction
2 Sessions
of 3 Hours
5 EFFICIENT MARKET HYPOTHESIS (EMH) :
· Random walk theory
· Weak, Semi-Strong and Strong form
· Empirical Evidence of EMH
· Anomalies in the markets: Firm Size Effect, January Effect,
Monday Effect.
2 Sessions
of 3 Hours
6 Hedging, speculation and managing risk - return balance
Effect of taxation on investment decision, permissible deductions,
exemptions, tax free investments, tax lots and loss harvesting
Asset allocation basics - as per IPS, tolerance definitions,
substitution rules
Weighted average cost of capital, portfolio beta and risk premium
Using fundamental analysis for security selection and technical
analysis for timing of orders
Investor behaviour analysis - cyclic nature, need induced decisions,
tax dependencies, risk and return expectations, modeling using
intelligence derived from behavioural analysis
2 Sessions
of 3 Hours
7 PORTFOLIO PERFORMANCE MEASURES
· Sharp Index
· Treynor Index
· Jensen's Measure
· Empirical Test of Mutual Fund Performance & EMH
1 Session of
3 Hours
8 Case Studies and Presentations 2 Sessions
of 3 Hours
Entities in Financial Services World and Role of a Finance Executive 100
marks (15 Sessions of 3 Hours Each) Sem I
SL.No Particulars Sessions
1 Buy side and sell side companies, their functions and inter
dependencies
Investment advisors - regulation, qualification requirements, exams,
registration requirements
Interaction with an Investment Advisor
2 Sessions
of 3 Hours
Each
2 Brokers and dealers - regulatory supervision by SEBI, exchange
supervision, reporting, commision and charges, infrastruture
requirements, exams and qualifications
Interaction with a Broker Dealer
2 Sessions
of 3 Hours
Each
3
Depository - maintenance of securities accounts, role of depository
participants, connectivity with clearing members and custodians
Interaction with a depository official
Exchange and clearing corporation - order matching mechanisms,
settlement processes, responsibilities and regulatory supervision
3 Sessions
of 3 Hours
Each
4 Interaction with an official from Exchange
Custodian - securities safe keeping, reconciliation, settlement
assurance, corporate action processing
Interaction with a Custodian
Reference data providers - information vending, charges and
responsibilities
3 Sessions
of 3 Hours
Each
5 Role of a Finance Executive
Treasury manager
Wealth Manager
Business Analyst in an IT Firm
Risk and Compliance Manager
3 Sessions
of 3 Hours
Each
6 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
Financial Institutions & Markets – Meir Kohn – Oxford Publications
Indian Financial System – Dr S.C Bihari – International Book House Ltd
Financial Markets & Institutions – Fredric S Mishkin, Stanley G Eakins – Pearson Publications
Financial Markets and Institutions by Anthony Saunders- Tata McGraw Hill Publication
Capital Markets – Dr S Gurusamy – McGraw Hill Education
Capital Markets Institutions and Instruments – Frank J. Fabozzi, Franco Modigliani, Pearson
Education
Analysis of financial statements 100 Marks (15 Sessions of 3 Hours Each) Sem
I
SL.No Particulars Sessions
1 Revision of Balance Sheet and P&L statement fundamentals.
Indian Accounting Standards
Indian Accounting Standard vs US GAAP
(This would also cover the manipulations often done by
companies to show higher profits)
2 Sessions of 3
Hours Each
2 Cash Flow Analysis
Measuring operating / financing and investing Cash flows.
Cash flows and life cycle state of a company
Cash flows and financial flexibility (linkages to dividend policy
and over retention of profits)
2 Sessions of 3
Hours Each
3 Assessing Business Performance
Operational efficiency ratios (Gross profit, net profit margins
and various turnover
ratios)
Liquidity ratios – Current Ratio / Acid test
Profitability ratios, Valuation Ratios
EPS/ ROE/ ROCE/ Total Shareholder returns, Linkages
between ROE & ROCE &
optimal capital structure and determinants of PE multiple,
Price to book value, EV/EBDITA
multiple.
Capitalization ratios- Debt Equity, Debt to Assets.
Du-pont Analysis
Coverage ratios and credit analysis and ratings
(The emphasis will be on correct interpretation and correct
measurement i.e. with necessary
accounting adjustments for these ratios).
3 Sessions of 3
Hours Each
4 Free Cash flows to Equity / Firm
From earnings to free cash flows
Adjustment from standard accounting to correctly measure
free cash flow.
Capitalisation leasing expense and R&D expenditure, correct
treatment for amortization
expense and deferred taxes
Measuring correct ROE & ROC after adjusting for inter-
corporate investments.
Implication of the above mentioned adjustments on
fundamental valuations / company and
PE or Price / Book Value or EBDITA multiple.
2 Sessions of 3
Hours Each
5 Introduction to Advance Accounting Concepts
Merger and acquisition
Consolidation of balance sheets
Deferred taxes, minority interest
NOPAT and adjustments to NOPAT from EVA perspective
to measure correct economic cash flows.
Economic value added (EVA) and linkages between value of
a company and EVA.
Equity Analysis, Stock Splits and Buy back
Managing Productivity of Corporate Capital
Composite Index for measuring productivity
3 Sessions of 3
Hours Each
6 Forecasting FCFE / FCFF and Security Valuation 1 Session of 3
Hours
7 Case Studies and Presentations 2 Sessions of 3
Hours Each
Reference Text
Financial Management by Prasanna Chandra
Financial Management by Khan and Jain.
Corporate Finance by Brealey – Myers
DIPLOMA IN CAPITAL MARKETS
SEM – II
Regulation of Financial Services Companies 100 marks (15 Sessions of 3
Hours Each) Sem II
SL.No Particulars Sessions
1 India - SEBI reporting requirements, Companies Act, Reserve Bank
of India FS regulations 3 Sessions
of 3 Hours
Each 2 Europe - MiFID - best execution, EU passporting, transparency and
level playing field 3 Sessions
of 3 Hours
Each
3
US - Dodd Frank Act - consumer protection, OTC derivatives to
exchanges, centralised data repository, Swap execution facility (SEF) 3 Sessions
of 3 Hours
Each
4 International - BASEL - provisioning, introduction to credit, market
and operational risk, reporting to regulators as per norms
International - FATCA - identification of accounts and investments
by US nationals
4 Sessions
of 3 Hours
Each
5 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
Bare Acts
Corporate Laws by Dr Anil Kumar – International Book House Ltd
SEBI Manual Taxmann
Introduction to Risk Management 100 marks (15 Sessions of 3 Hours Each)
Sem II
SL.No Particulars Sessions
1 Risk: Definition
Risk Process – Risk Organisation
Key Risks – Interest Rate Risk, Market Risk, Currency Risk, Credit
Risk, Liquidity Risk, Legal & Operational Risk
4 Sessions
of 3 Hours
Each
2 Risk Measurement & Control
Calculation
Risk Exposure Analysis
Risk Management / Mitigation policy
Risk Immunization Policy / Strategy fixing exposure limits
4 Sessions
of 3 Hours
Each
3 Delegation with accountability
i) Open position
ii) Asset position limit
iii) Deal size
iv) Individual dealer’s limit
v) Stop loss limits
5 Sessions
of 3 Hours
Each
4 Case studies and presentations 2 Sessions
of 3 Hours
Each
Reference Text
Financial Risk Management – Dun & Bradstreet –Tata McGraw Hill Education
Quantitative Risk Management – A Practical Guide to Financial Risk – Wiley Finance
Derivatives Products & Strategies 100 marks (15 Sessions of 3 Hours Each)
Sem II
SL.No Particulars Sessions
1 Exotic Options
Asian Options, Bermudan Options, Forward Start Options
Barrier Options, Shout Options, Chooser Options
2 Sessions
of 3 Hours
Each
2 Lookback Options, Cliquet / Reverse Cliquet Options
Napolean Options, Rachet Options
Exchange Options, Binary / Digital Options
3 Sessions
of 3 Hours
Each
3 Rainbow Options, Basket Options
Spread Options, Compound Options
Trading strategies involving derivatives for hedging, arbitrage and
speculation
3 Sessions
of 3 Hours
Each
4 Bull and Bear Spreads
Calendar Spread
Diagonal Spread
2 Sessions
of 3 Hours
Each
5 Straddle
Strangle
Strap
Strip
2 Sessions
of 3 Hours
Each
6 Call-Put Parity Conversion-reversal 1 Session of
3 Hours
Each
7 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
1. Options, Future & Other Derivatives – by John. C.Hull
2. Applied Derivatives – Richard .J. Rendleman, Jr
Special Focus on:
Chap: 2 -- PUT – CALL Parity
Chap : 3 & 4 -- Binomial Option Pricing Models
3. Option Volatility & Pricing – Sheldon Naten Berg
An excellent book from options trading perspective. A handout on option Greeks will be given to
students at the appropriate time.
4. The New Options Market – Max Ansbacher
Again an excellent book from option trading perspective. A handout on trading strategies will
be given to the students.
5. Derivatives – The Wild beast of Finance – Alfred Steinherr
This books deals in detail with the following well-known disasters with Derivatives.
Metallgesellschaft – (Rollover Risk)
o Barings (LESSON’S – CASE) – Highly speculation & Leverages position in Derivatives
o Hedge Funds & the collapse of LTCM (Long Term Capital Management)
Derivatives & Risk Management – Rajiv Srivastava – Oxford Publications
Derivatives & Risk Management – Sundaram Janakiramanan – Pearson Publications
Options , Futures & Other Derivatives – John C Hull, Sankarshan Basu – Pearson Publications
Commodities Market 15 Sessions of 3 Hours 100 Marks Sem II
SL.No Particulars Sessions
1 Introduction to Commodity Derivatives
Introduction to derivatives, products, participants and functions,
derivatives markets, difference between commodity and financial
derivatives. Evolution of commodity exchanges, global commodity
derivatives exchanges, latest developments. The NCDEX platform –
Structure, exchange membership, risk management, clearing and
settlement system and commodities traded on the NCDEX platform.
2 Sessions
of 3 Hours
2 Historical changes and growth of global and domestic Commodities
derivatives markets
FCR Act 1952 and Regulatory structure of Commodities Derivatives
Markets in India
1 Session of
3 Hours
3 Application of Commodity Futures
Instruments available for trading - Forward contracts, Introduction to
futures and options, Payoff for F&O, using futures versus options;
Pricing commodity futures – Investment assets versus consumption
assets, Cost of carry model, Futures basis; Using commodity futures
for hedging, Speculation and arbitrage.
2 Sessions
of 3 Hours
4 Trading, Clearing and Settlement
Trading - Futures trading system, Entities in the trading system,
Commodity futures trading cycle, Order types and trading,
Parameters, Margins for trading in futures, Charges, Hedge limits;
Clearing and settlement - Clearing, Settlement, Risk management,
Margining at NCDEX and Standard Portfolio Analysis of Risk
(SPAN).
3 Sessions
of 3 Hours
5 Issues in Agricultural Commodities Markets
Issues in Non-Agricultural Commodities Markets
1 Session of
3 Hours
6 Commodities Derivative Exchanges and design of the
markets
Issues related to Spot price and present practices of
commodities exchanges
Clearing House operations and Risk Management
Procedures
1 Session of
3 Hours
7 Delivery Related Issues like delivery centers, deliverable
varieties, assaying
Issues related to monitoring and surveillance by Exchanges
and Regulator
Role of intermediaries in Commodities Markets
1 Session of
3 Hours
8 Basis Risk and its importance in pricing
Agricultural Commodity Futures trading pattern in
Exchange – Case study
Non- Agricultural Commodity Futures trading pattern in
Exchange – Case study
International commodity indices and as a investment tool for
investors
2 Sessions
of 3 Hours
9 Case Studies and Presentations 2 Sessions
of 3 Hours
Recommended books :
1. Commodities Rising , Jeffery M. Christian , John Wiley & Sons, 2006
2. Dow Jones – Irwin Guide to Commodities Trading , Bruce Gould , Author House, 2003
3. Commodity Fundamentals , Ronald Spurga, John Wiley & Sons, 2006
4. Commodity Futures & Financial Markets, Louis Philips, 1990
5. The Encyclopedia of Commodity & Financial Spreads , Steve Moore, John Wiley & Sons,
2008
6. International Commodity Markets & The Role of Cartels , Mark s. Lechair, M.E. Sharpe
,2001
7. Commodity Options , Larry D. Spears, Market Place Books, 1993
8. Training The Pits: Technical Approach to Commodity Trading , Robert M. Barnes, John
Wiley & Sons,
9. Commodity Options, Terry S. Mayer , Prentice Hall ,1993
10. Structured Products Vol. II Equity , Commodity , Credit & New Markets , Satyajit Das
John Wiley & Sons, 2005
11. Breaking Through Success : A Commodity Investor ‘s Guide Book, Patrick Lafferty &
Nell Sloane
12. Managing Commodity Price Risk & Developing Countries , Stijn Claessens & Ronald C.
Dunkan, John Hopkins University Press, 1994
13. The Commodities Glossary , Commodity Futures Trading Corporation, International Law
& Taxation ,2005
Dissertation Project 100 Marks
Scheme of Assessments for Subjects of 100 Marks
The Semester end Examination will be conducted for 60 Marks.
Internal Assessments will be conducted for 40 Marks.
The allocation of 40 marks shall be on the following basis: -
i) Periodical class tests held in the given semester (20 Marks)
j) Presentations throughout the semester (10 Marks)
k) Attendance and Active participation in routine class instructional deliveries (05 Marks)
l) Overall Conduct as a responsible student, mannerism and articulation and exhibition of
leadership qualities in organizing related academic activities. (05 Marks)
Note: A Student has to separately secure minimum 50% marks (i.e 20 out of 40) in the
internal assessments and secure minimum 50% marks (i.e 30 out of 60) in the
Semester End Examination in every subject to be declared as Pass.
Question Paper Pattern for Semester End Examination (60 Marks)
There will be Seven Questions in all.
Q1 would be compulsory and would carry 20 Marks
In addition to Q1, there would be six questions. Each question would carry 10 Marks. Each of
these Six Questions will have three sub – questions and each sub – question would carry 05
Marks
Students have to attempt any four out of the remaining six Questions and within each question;
students have to attempt any two out of three sub – questions.
In all, students have to attempt five questions i.e (Q1+Any Four of the remaining)
Q1 – 20 Marks (Compulsory)
Attempt Any Four out of the Remaining Six Questions
Q2 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q3 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q4 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q5 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q6 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q7 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Credit Based Grading System for One Year Diploma Course
Semester End Examinations
Credit Point:
A Credit Point denotes the quantum of effort required to be put in by a student, who takes
up a course. In other words, it is an index of number of learning hours prescribed for a
certain segment of learning.
Learning Hours
Learning Hours for Subjects of 100 Marks (60+40)
Learning Hours consist of Classroom teaching hours and other complementary learning activities
indicated here below
5) Classroom teaching hours ((15 Sessions X 3 Hours = 45 Hours))
6) Other Complementary learning activities (75 Hours)
The learning activities consist of the following:
Reading, Introspection, Thoughtful Reflection, Group Discussions, Lectures, Field Work,
Workshops, Counseling Sessions, Watching Educational and Informative Videos,
Assignments, Live Projects, Case Studies, Presentations, Preparation for Examinations,
Participation in academic and extra – curricular activities, inculcation of industry specific
skills and training & development sessions.
The total learning hours would be thus equivalent to 45+75=120 Hours for subjects of
100 Marks
Credit Point Computation
One credit is construed as equivalent to 30 learning hours.
Credit completion and Credit accumulation:
Each module of an academic program has been assigned specific credit points defining
successful completion of the course under study.
Credit completion or Credit acquisition may be considered to take place after the learner
has successfully cleared all the evaluation criteria with respect to a single course.
A learner who successfully completes a 4 CP (Credit Point) course is treated to have
collected or acquired 4 credits. His performance above the minimum prescribed level
(viz. grades / marks obtained) has no bearing on the number of credits collected or
acquired.
A learner keeps on accumulating more credits as he completes additional courses.
Introduction of Grading System at the University of Mumbai
A well designed evaluation system that integrates the aforesaid parameters having due attention
to their relative importance in the context of the given academic programme.
What is Grading?
Grading, in the educational context is a method of reporting the result of a learner’s
performance subsequent to his evaluation. It involves a set of alphabets which are clearly
defined and designated and uniformly understood by all the stake holders.
A properly introduced grading system not only provides for a comparison of the learners’
performance but it also indicates the quality of performance with respect to the amount of
efforts put in and the amount of knowledge acquired at the end of the course by the
learners.
The Seven Point Grading System
A series of meetings of all the Deans & Controller of Examinations were held to discuss
the system of grading to be adopted at the post graduate level. Mumbai University,
subsequently in its Academic Council meeting and in its Management Council meeting
resolved to adopt and implement the Seven (07) Point Grading System from the
academic year 2012-13.
The Grade Point and the grade allocation shall be as per the Grade Table given below:
Note: - Consider 1 Grade Point is equal to Zero for CG calculations in respect of failed
learner/s in the concerned course/s.
Conversion of Marks to Grades and Calculations of GPA (Grade
Point Average)
In the Credit and Grade Point System, the assessment of individual Courses in the
concerned examinations will be only on the basis of marks obtained; however these
marks shall be converted later into Grades by a mechanism wherein the overall
performance of the Learners can be reflected by the overall evaluation in terms of
Grades.
Abbreviations used for gradation needs understanding of each and every parameter
involved in grade computation and the evaluation mechanism. The abbreviations and
formulas used are as follows:-
Abbreviations and Formula’s Used:-
G: Grade
GP: Grade Points
C: Credits
CP: Credit Points
CG: Credits X Grades (Product of credits & Grades)
∑CG: Sum of Product of Credits & Grades points
∑C: Sum of Credits points
SGPA = ∑CG
------
∑C
SGPA: Semester Grade Point Average shall be calculated for individual semesters. (It is also
designated as GPA)
CGPA: Cumulative Grade Point Average shall be calculated for the entire Programme by
considering all the semesters taken together.
Special Point to Note:
While calculating the CG the value of Grade Point 1 shall be considered as Zero (0) in case
of learners who failed in the concerned course/s obtaining marks below 50.
After calculating the SGPA for an individual semester and the CGPA for entire programme, the
value can be matched with the grade as given in the Grade Point table as per the Seven (07)
Points Grading System and expressed as a single designated GRADE such as O, A, B, etc….
The SGPA of learners who have failed in one subject or more than one subjects shall not be
calculated.
Illustrations of the Calculations: -
Credit Points and Grading Calculations for First Semester
1 Credit = 30 Learning Hours
Result: - Passing in All Courses with more than 50% Marks
Courses In
Semesters
No of
Learning
Hours
Credits
Per
Course ( C
)
Marks
Obtained
(%)
Grade
Grade
Points
(G)
∑CG =
CxG
SGPA =
∑CG/∑C
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
60 4 55 D 3 12
88/20=4.4
Capital Markets 60 4 60 C 4 16
Security
Analysis &
Portfolio
Management
60 4 70 A 6 24
Entities in
Financial
Services World
& Role of a
Finance
Executive
60 4 80 O 7 28
Analysis of
Financial
Statements
60 4 50 E 2 8
Total 480 ∑C=20
Credit Earned = 20 ∑CG =
88 Grade C
Passes
Credit Points and Grading Calculations for First Semester
1 Credit = 30 Learning Hours
Result: - Fails in One Course or More than One Courses with Less than 50% Marks
Courses In Semesters
No of Learning
Hours
Credits Per Course ( C )
Marks Obtained
(%) Grade
Grade Points
(G)
∑CG = CxG
SGPA = ∑CG/∑C
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
60 4 55 D 3 12
--------
Capital Markets 60 4 60 C 4 16
Security
Analysis &
Portfolio
Management
60 4 70 A 6 24
Entities in
Financial
Services World
& Role of a
Finance
Executive
60 4 80 O 7 28
Analysis of
Financial
Statements
60 4 45 F 1 0
Total 480 ∑C=20
Credit Earned = 16 ∑CG =80
Grade F Fails
Note: - Consider 1 Grade Point is equal to Zero for CG calculations of failed
learner/s in the concerned course/s.
The student has been awarded 1 Grade Point, even though he has failed in the
subject of Analysis of Financial Statements, however, 1 Grade Point is equal to Zero
for CG calculations of failed learner/s in the concerned course/s.
The SGPA has not been calculated as the student has failed.
Diploma in Investment Management – Semester – I
Sr.
No. Subject
Teaching Hours Assessment Pattern
No. of
Sessions of
90 minutes
No. of
Sessions of
90 minutes
per week
Continu
ous
Assessm
ent
Semester
End
Examinati
on
Total
Marks
Duration
of Theory
Paper
No of
Credits
1
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
30 2
40 UA 60 UA 100 3 4
2
Wealth
Management
& Alternative
Investments
30 2
40 UA
60 UA
100
3
4
3
Security
Analysis &
Portfolio
Management
30 2
40 UA 60 UA 100 3 4
4
Entities in
Financial
Services World
& Role of a
Finance
Executive
30 2
40 UA 60 UA 100 3 4
5
Analysis of
Financial
Statements
30 2
40 UA 60 UA 100 3 4
Total No of Credits 20
UA: - University Assessment; IA: - Internal Assessment
Diploma in Investment Management – Semester – II
Sr.
No. Subject
Teaching Hours Assessment Pattern
No. of
Sessions of
90 minutes
No. of
Sessions of
90 minutes
per week
Continu
ous
Assessm
ent
Semester
End
Examinati
on
Total
Marks
Duration
of Theory
Paper
No of
Credits
1
Regulation of
Financial
Services
Companies
30 2
40 UA 60 UA 100 3 4
2
Introduction to
Risk
Management
30 2
40 UA
60 UA
100
3
4
3
Derivatives
Products &
Strategies
30 2
40 UA 60 UA 100 3 4
4 Commodities
Market 30 2
40 UA 60 UA 100 3 4
5 Dissertation
Project 100 Marks
4
Total No of Credits 20
UA: - University Assessment; IA: - Internal Assessment
Semester Total No of
Credits
Semester I 20
Semester II 20
Total 40
DIPLOMA IN INVESTMENT MANAGEMENT
SEM – I
Introduction to Equity, Fixed Income Securities and Derivatives 100 marks
(15 Sessions of 3 Hours Each) Sem I
Equity
SL.No Particulars Sessions
1 Revisit basics - formation of a company, need for capital
Primary market for raising funds - equity IPO
Steps in issue management - approvals, marketing, underwriting,
regulatory reporting, book building and issue closure
Issue prospectus, reporting to authorities, cash management
Investor's perspective on investment in equities - risk & return,
mutual funds - equity funds and comparison with direct investment
in equity
2 Sessions
of 3 Hours
Each
2 Secondary market - types of orders, functioning in US, EU and India
Corporate actions - dividend, rights, bonus etc.
Latest developments in equity trading – algorithmic analytics etc.
Fundamental analysis - b/s, P&L, ratios, peer and competitor
analysis
Technical analysis - DMA, predictive tools, charts
Introduction to quantitative trading techniques
Types of markets - Auction, Dealer, market making and hybrid, dark
pools, crossing networks, communication networks and other
alternative trading systems (ATS)
1 Session of
3 Hours
Each
3
Recent advances in technology - mobile platforms, co-location etc.
Messaging in post trade pre settlement - Straight Through
Processing (STP), messaging protocols - SWIFT, FIX
Clearing and settlement of equity trades - comparison of regulated
exchanges and over the counter (OTC), margin and risk
management, trade failure, consequences, auction, securities lending
and borrowing
1 Session of
3 Hours
Each
Fixed Income Securities
SL.No Particulars Sessions
4 Revisit basics - formation of a company, need for borrowing,
leverage
Types of bonds - secured, unsecured, Government bonds, Company
debentures, term structure, inflation protected, convertible etc.
Terms used in bond markets - yield, curve, coupon, rating & credit
risk
1 Session of
3 Hours
Each
5 Bond mathematics - time value of money, cash flow based
calculations - NPV, IRR (yield to maturity), convexity, duration and
immunization
Issue of bonds in primary markets - IPO process, placement and
market making
Steps in issue management - approvals, marketing, underwriting,
regulatory reporting, rate structure
Issue prospectus, reporting to authorities, cash flow - liability
management
Investor's perspective on investment in FI - credit risk & return,
Mutual funds - bond funds and comparison with direct investment in
FI, call risk, inflation risk and reinvestment risk
2 Sessions
of 3 Hours
Each
6 Secondary market - types of orders, functioning in US, EU and India
Corporate actions - coupon, processing of convertible warrants
Techniques in FI trading - LIBOR, zero coupon yield curve,
modeling, yield analytics etc.
Fundamental analysis - b/s, P&L, liquidity ratios, peer and
competitor analysis, past history of defaults by the issuer
Clearing and settlement practices in fixed income securities market
2 Sessions
of 3 Hours
Each
Derivatives
SL.No Particulars Sessions
7 Forwards - characteristics, OTC markets where forwards are used,
risk management in absence of central counterparty, flexibility in 2 Sessions
of 3 Hours
customized contracts and disadvantages in trading such contracts
Futures - standardization over forwards, regulated markets where the
futures are traded, financial and non financial futures contracts,
terms and conditions, daily mark to market as risk management
mechanism, pricing of futures, how the futures price tends to spot
price towards maturity, delivery mechanisms for settlement
Options - types of options - put and call, buyers and sellers of
options, trading in options contracts, margin for risk management,
settlement practices for exercised options, effect of corporate action
on options, option chains, open interest, calculation of option price
(basics of Black and Scholes model), strike price, intrinsic and time
value of options, option risk - return charts, greeks and basic
calculations
Swaps - interest rate, forex, equity-fixed income swaps, OTS swap
transactions, how banks act as intermediaries for swaps, cash flow
management, resets and calculations
Each
8 Mutual funds - asset management company, MF trust, issue of units,
distribution channels, cash flow management for open ended funds,
types of schemes - open-close, growth-sectoral-equity-fixed income
etc., MF ratings, entry-exit loads, how ETF differs from MF, NAV
calculation, regulation of mutual funds - SEBI and SEC
Foreign currency as investment asset class, derivatives on foreign
exchange rates, hedging, bid-offer spreads, simple calculations
Insurance - life and non life insurance schemes, riders, actuarial
basics, regulation of insurance sector, asset liability and risk
management for insurance companies, premium collection and
bonus distribution
3 Sessions
of 3 Hours
Each
SL.No Particulars Sessions
9 Pension funds - defined benefit, defined contribution funds,
employee and employer contributions, investment of pension fund
investments, regulation, differed tax schemes, types of pension funds
in US and UK
Mortgage backed securites - asset (receivable) pooling, formation of
a trust company, selling of pooled assets, creation of securities,
selling and distribution to retail investors, senior tranches,
3 Sessions
of 3 Hours
Each
repayment risk, how the mortgage market triggered the collapse in
US in 2009-10
Other asset classes - alternative investments, hedge funds, private
equity, investment in collectibles - art, wine etc.
10 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text:
The Hand Book of Fixed Income Securities- Fabozzi Frank McGraw Hill
International.
Fixed Income Markets & Their Derivatives: Suresh Sunderasan –Thomson
Learning.
Swaps : Richard Flavell – John Wiley Publications.
Security Analysis and Portfolio Management (6th Edn.) By Donald Fischer and Ronald
Jordan, Prentice Hall of India (1995)
Securities Analysis and Portfolio Management , Prasanna Chandra, Tata McGraw Hill
(2002)
Options, Future & Other Derivatives – by John. C.Hull
Applied Derivatives – Richard .J. Rendleman, Jr
Special Focus on:
Chap: 2 -- PUT – CALL Parity
Chap : 3 & 4 -- Binomial Option Pricing Models
Option Volatility & Pricing – Sheldon Naten Berg
Wealth Management and Alternative Investments 100 marks (15 Sessions of
3 Hours Each) Sem I
Wealth Management
SL.No Particulars Sessions
1 Functions of investment advisor, independent advisors, wire house 2 Sessions
wealth managers, custodians offering white labled solutions to
advisors, software solutions for advisors
Wealth management client categories - mass affluent, high net
worth, ultra high net worth, unified households
of 3 Hours
Each
2 Client on boarding - profiling, financial planning, suitability
assessment - aggressive, moderate etc., client preferences,
restrictions, return expectations versus risk appetite
Structure the cash flow forecasting and define the goals, milestones,
liabilities etc.
1 Session of
3 Hours
Each
3
Types of wealth management account structures - separately
managed accounts, unified managed accounts, overlay portfolio
management, sleeves and open architecture wealth management,
portfolio manager models, pooled funds
Technology absorption in wealth management - use of social media
in wealth management, mobility solutions and advantages to
investment advisors
2 Sessions
of 3 Hours
Each
4 Asset allocation, active passive investment styles - advantages,
correlation in security returns and risk diversification, standard
deviation of each asset class and security
Portfolio modeling using multiple asset classes, monitoring
tolerances and rebalancing, substitution rules
Portfolio performance measurement, attribution and reporting
2 Sessions
of 3 Hours
Each
Alternative Investments
SL.No Particulars Sessions
5 Hedge funds - concept, strategies, debacle of hedge funds in 2009-
10 market crisis, how hedge funds employed quantitative methods to
generate alpha, how regulation caught up with the hedge fund
industry
2 Sessions
of 3 Hours
Each
6 Private equity - structuring of deals, calls and commitments,
investment strategies, water fall model for distribution of returns,
liquidation of investments and risk-return pay off
1 Session of
3 Hours
Each 7 Exchange traded funds - creation of ETF, deposition of assets,
selling of units, market making, trading in ETF units, liquidation of
ETF, types of ETFs, regulation of ETF
1 Session of
3 Hours
Each 8 Investment in real estate as an asset class, constraints, risk and
return, Government regulation, capital gains and taxation
Other alternative investment asset classes - collectibles - art, art
investment funds, valuation, protection, wine, storage, liquidation,
diamonds, mines and forests
2 Sessions
of 3 Hours
Each
9 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text:
ICICI Notes on Wealth Management
Wealth Management – Harold R Evensky
Security Analysis and Portfolio Management 15 Sessions of 3 Hours 100
Marks Sem I
SL.No Particulars Sessions
1 Risk And Return
Risk and return in each asset class - equity, fixed income, MF etc.
· Simple determination of stock market price using time value of
money - simple one
period and multi period case.
· Return on common stock under uncertainty, for a single stock
Expected Return,
Variance of Return, Concept of probability Distribution of Returns.
· Co-movement of two Assets returns, Measuring of Covariance
definition and Simple
Numerical Example, Correlation Coefficient
· Two asset portfolio case, expected return and variance of returns of
a Two asset
Portfolio Simple Numerical Example and Graphical Illustration
· Diversification of Risk, Systematic and Unsystematic risk
2 Sessions
of 3 Hours
2 MODERN PORTFOLIO THEORY
· General N-asset Portfolio Problem, Marches Model: Objectives
Function and Constraints,
Meaning of Efficient Frontier / Set, Concept of CML (Capital
Market Line), Concept of
Market Portfolio, Risk Free rate, Borrowing and Lending rates.
2 Sessions
of 3 Hours
3 SHARP'S SINGLE INDEX OR MARKET MODEL:
· How Asset Returns move with the market.
· Slope of security Market Line (SML)
· Properties of any asset on the line.
· Assumptions and some empirical evidence of CAPM
· Arbitrage pricing theory - Introduction
2 Sessions
of 3 Hours
Reference Text:
1. Security Analysis and Portfolio Management (6th Edn.) By Donald Fischer and Ronald
Jordan, Prentice Hall of India (1995)
2. Securities Analysis and Portfolio Management , Prasanna Chandra, Tata McGraw Hill
(2002 )
4 CAPITAL ASSET PRICING MODEL:
· Statement of CAPM.
· Slope of security Market Line (SML)
· Properties of any asset on the line.
· Assumptions and some empirical evidence of CAPM
· Arbitrage pricing theory – Introduction
2 Sessions
of 3 Hours
5 EFFICIENT MARKET HYPOTHESIS (EMH) :
· Random walk theory
· Weak, Semi-Strong and Strong form
· Empirical Evidence of EMH
· Anomalies in the markets: Firm Size Effect, January Effect,
Monday Effect.
2 Sessions
of 3 Hours
6 Hedging, speculation and managing risk - return balance
Effect of taxation on investment decision, permissible deductions,
exemptions, tax free investments, tax lots and loss harvesting
Asset allocation basics - as per IPS, tolerance definitions,
substitution rules
Weighted average cost of capital, portfolio beta and risk premium
Using fundamental analysis for security selection and technical
analysis for timing of orders
Investor behaviour analysis - cyclic nature, need induced decisions,
tax dependencies, risk and return expectations, modeling using
intelligence derived from behavioural analysis
2 Sessions
of 3 Hours
7 PORTFOLIO PERFORMANCE MEASURES
· Sharp Index
· Treynor Index
· Jensen's Measure
· Empirical Test of Mutual Fund Performance & EMH
1 Session of
3 Hours
8 Case Studies and Presentations 2 Sessions
of 3 Hours
Entities in Financial Services World and Role of a Finance Executive 100
marks (15 Sessions of 3 Hours Each) Sem I
SL.No Particulars Sessions
1 Buy side and sell side companies, their functions and inter
dependencies
Investment advisors - regulation, qualification requirements, exams,
registration requirements
Interaction with an Investment Advisor
2 Sessions
of 3 Hours
Each
2 Brokers and dealers - regulatory supervision by SEBI, exchange
supervision, reporting, commision and charges, infrastruture
requirements, exams and qualifications
Interaction with a Broker Dealer
2 Sessions
of 3 Hours
Each
3
Depository - maintenance of securities accounts, role of depository
participants, connectivity with clearing members and custodians
Interaction with a depository official
Exchange and clearing corporation - order matching mechanisms,
settlement processes, responsibilities and regulatory supervision
3 Sessions
of 3 Hours
Each
4 Interaction with an official from Exchange
Custodian - securities safe keeping, reconciliation, settlement
assurance, corporate action processing
Interaction with a Custodian
Reference data providers - information vending, charges and
responsibilities
3 Sessions
of 3 Hours
Each
5 Role of a Finance Executive
Treasury manager
Wealth Manager
Business Analyst in an IT Firm
Risk and Compliance Manager
3 Sessions
of 3 Hours
Each
6 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
Financial Institutions & Markets – Meir Kohn – Oxford Publications
Indian Financial System – Dr S.C Bihari – International Book House Ltd
Financial Markets & Institutions – Fredric S Mishkin, Stanley G Eakins – Pearson Publications
Financial Markets and Institutions by Anthony Saunders- Tata McGraw Hill Publication
Capital Markets – Dr S Gurusamy – McGraw Hill Education
Capital Markets Institutions and Instruments – Frank J. Fabozzi, Franco Modigliani, Pearson
Education
Analysis of financial statements 100 Marks (15 Sessions of 3 Hours Each) Sem I
SL.No Particulars Sessions
1 Revision of Balance Sheet and P&L statement fundamentals.
Indian Accounting Standards
Indian Accounting Standard vs US GAAP
(This would also cover the manipulations often done by
companies to show higher profits)
2 Sessions of 3
Hours Each
2 Cash Flow Analysis
Measuring operating / financing and investing Cash flows.
Cash flows and life cycle state of a company
Cash flows and financial flexibility (linkages to dividend policy
and over retention of profits)
2 Sessions of 3
Hours Each
3 Assessing Business Performance
Operational efficiency ratios (Gross profit, net profit margins
and various turnover
ratios)
Liquidity ratios – Current Ratio / Acid test
Profitability ratios, Valuation Ratios
EPS/ ROE/ ROCE/ Total Shareholder returns, Linkages
between ROE & ROCE &
optimal capital structure and determinants of PE multiple,
Price to book value, EV/EBDITA
multiple.
Capitalization ratios- Debt Equity, Debt to Assets.
Du-pont Analysis
Coverage ratios and credit analysis and ratings
(The emphasis will be on correct interpretation and correct
measurement i.e. with necessary
accounting adjustments for these ratios).
3 Sessions of 3
Hours Each
4 Free Cash flows to Equity / Firm
From earnings to free cash flows
Adjustment from standard accounting to correctly measure
free cash flow.
Capitalisation leasing expense and R&D expenditure, correct
treatment for amortization
expense and deferred taxes
Measuring correct ROE & ROC after adjusting for inter-
corporate investments.
Implication of the above mentioned adjustments on
fundamental valuations / company and
PE or Price / Book Value or EBDITA multiple.
2 Sessions of 3
Hours Each
5 Introduction to Advance Accounting Concepts
Merger and acquisition
Consolidation of balance sheets
Deferred taxes, minority interest
NOPAT and adjustments to NOPAT from EVA perspective
to measure correct economic cash flows.
Economic value added (EVA) and linkages between value of
a company and EVA.
Equity Analysis, Stock Splits and Buy back
Managing Productivity of Corporate Capital
Composite Index for measuring productivity
3 Sessions of 3
Hours Each
6 Forecasting FCFE / FCFF and Security Valuation 1 Session of 3
Hours
7 Case Studies and Presentations 2 Sessions of 3
Hours Each
Reference Text
Financial Management by Prasanna Chandra
Financial Management by Khan and Jain.
Corporate Finance by Brealey – Myers
DIPLOMA IN INVESTMENT MANAGEMENT
SEM – II
Regulation of Financial Services Companies 100 marks (15 Sessions of 3
Hours Each) Sem II
SL.No Particulars Sessions
1 India - SEBI reporting requirements, Companies Act, Reserve Bank
of India FS regulations 3 Sessions
of 3 Hours
Each 2 Europe - MiFID - best execution, EU passporting, transparency and
level playing field 3 Sessions
of 3 Hours
Each
3
US - Dodd Frank Act - consumer protection, OTC derivatives to
exchanges, centralised data repository, Swap execution facility (SEF) 3 Sessions
of 3 Hours
Each
4 International - BASEL - provisioning, introduction to credit, market
and operational risk, reporting to regulators as per norms
International - FATCA - identification of accounts and investments
by US nationals
4 Sessions
of 3 Hours
Each
5 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
Bare Acts
Corporate Laws by Dr Anil Kumar – International Book House Ltd
SEBI Manual Taxmann
Introduction to Risk Management 100 marks (15 Sessions of 3 Hours Each)
Sem II
SL.No Particulars Sessions
1 Risk: Definition
Risk Process – Risk Organisation
Key Risks – Interest Rate Risk, Market Risk, Currency Risk, Credit
Risk, Liquidity Risk, Legal & Operational Risk
4 Sessions
of 3 Hours
Each
2 Risk Measurement & Control
Calculation
Risk Exposure Analysis
Risk Management / Mitigation policy
Risk Immunization Policy / Strategy fixing exposure limits
4 Sessions
of 3 Hours
Each
3 Delegation with accountability
i) Open position
ii) Asset position limit
iii) Deal size
iv) Individual dealer’s limit
v) Stop loss limits
5 Sessions
of 3 Hours
Each
4 Case studies and presentations 2 Sessions
of 3 Hours
Each
Reference Text
Financial Risk Management – Dun & Bradstreet –Tata McGraw Hill Education
Quantitative Risk Management – A Practical Guide to Financial Risk – Wiley Finance
Derivatives Products & Strategies 100 marks (15 Sessions of 3 Hours Each)
Sem II
SL.No Particulars Sessions
1 Exotic Options
Asian Options, Bermudan Options, Forward Start Options
Barrier Options, Shout Options, Chooser Options
2 Sessions
of 3 Hours
Each
2 Lookback Options, Cliquet / Reverse Cliquet Options
Napolean Options, Rachet Options
Exchange Options, Binary / Digital Options
3 Sessions
of 3 Hours
Each
3 Rainbow Options, Basket Options
Spread Options, Compound Options
Trading strategies involving derivatives for hedging, arbitrage and
speculation
3 Sessions
of 3 Hours
Each
4 Bull and Bear Spreads
Calendar Spread
Diagonal Spread
2 Sessions
of 3 Hours
Each
5 Straddle
Strangle
Strap
Strip
2 Sessions
of 3 Hours
Each
6 Call-Put Parity Conversion-reversal 1 Session of
3 Hours
Each
7 Case Studies and Presentations 2 Sessions
of 3 Hours
Each
Reference Text
1. Options, Future & Other Derivatives – by John. C.Hull
2. Applied Derivatives – Richard .J. Rendleman, Jr
Special Focus on:
Chap: 2 -- PUT – CALL Parity
Chap : 3 & 4 -- Binomial Option Pricing Models
3. Option Volatility & Pricing – Sheldon Naten Berg
An excellent book from options trading perspective. A handout on option Greeks will be given to
students at the appropriate time.
4. The New Options Market – Max Ansbacher
Again an excellent book from option trading perspective. A handout on trading strategies will
be given to the students.
5. Derivatives – The Wild beast of Finance – Alfred Steinherr
This books deals in detail with the following well-known disasters with Derivatives.
Metallgesellschaft – (Rollover Risk)
o Barings (LESSON’S – CASE) – Highly speculation & Leverages position in Derivatives
o Hedge Funds & the collapse of LTCM (Long Term Capital Management)
Derivatives & Risk Management – Rajiv Srivastava – Oxford Publications
Derivatives & Risk Management – Sundaram Janakiramanan – Pearson Publications
Options , Futures & Other Derivatives – John C Hull, Sankarshan Basu – Pearson Publications
Commodities Market 15 Sessions of 3 Hours 100 Marks Sem II
SL.No Particulars Sessions
1 Introduction to Commodity Derivatives
Introduction to derivatives, products, participants and functions,
derivatives markets, difference between commodity and financial
derivatives. Evolution of commodity exchanges, global commodity
derivatives exchanges, latest developments. The NCDEX platform –
Structure, exchange membership, risk management, clearing and
settlement system and commodities traded on the NCDEX platform.
2 Sessions
of 3 Hours
2 Historical changes and growth of global and domestic Commodities
derivatives markets
FCR Act 1952 and Regulatory structure of Commodities Derivatives
Markets in India
1 Session of
3 Hours
3 Application of Commodity Futures
Instruments available for trading - Forward contracts, Introduction to
futures and options, Payoff for F&O, using futures versus options;
Pricing commodity futures – Investment assets versus consumption
assets, Cost of carry model, Futures basis; Using commodity futures
for hedging, Speculation and arbitrage.
2 Sessions
of 3 Hours
4 Trading, Clearing and Settlement
Trading - Futures trading system, Entities in the trading system,
Commodity futures trading cycle, Order types and trading,
Parameters, Margins for trading in futures, Charges, Hedge limits;
Clearing and settlement - Clearing, Settlement, Risk management,
Margining at NCDEX and Standard Portfolio Analysis of Risk
(SPAN).
3 Sessions
of 3 Hours
Recommended books :
1. Commodities Rising , Jeffery M. Christian , John Wiley & Sons, 2006
2. Dow Jones – Irwin Guide to Commodities Trading , Bruce Gould , Author House, 2003
3. Commodity Fundamentals , Ronald Spurga, John Wiley & Sons, 2006
4. Commodity Futures & Financial Markets, Louis Philips, 1990
5. The Encyclopedia of Commodity & Financial Spreads , Steve Moore, John Wiley & Sons,
2008
5 Issues in Agricultural Commodities Markets
Issues in Non-Agricultural Commodities Markets
1 Session of
3 Hours
6 Commodities Derivative Exchanges and design of the
markets
Issues related to Spot price and present practices of
commodities exchanges
Clearing House operations and Risk Management
Procedures
1 Session of
3 Hours
7 Delivery Related Issues like delivery centers, deliverable
varieties, assaying
Issues related to monitoring and surveillance by Exchanges
and Regulator
Role of intermediaries in Commodities Markets
1 Session of
3 Hours
8 Basis Risk and its importance in pricing
Agricultural Commodity Futures trading pattern in
Exchange – Case study
Non- Agricultural Commodity Futures trading pattern in
Exchange – Case study
International commodity indices and as a investment tool for
investors
2 Sessions
of 3 Hours
9 Case Studies and Presentations 2 Sessions
of 3 Hours
6. International Commodity Markets & The Role of Cartels , Mark s. Lechair, M.E. Sharpe
,2001
7. Commodity Options , Larry D. Spears, Market Place Books, 1993
8. Training The Pits: Technical Approach to Commodity Trading , Robert M. Barnes, John
Wiley & Sons,
9. Commodity Options, Terry S. Mayer , Prentice Hall ,1993
10. Structured Products Vol. II Equity , Commodity , Credit & New Markets , Satyajit Das
John Wiley & Sons, 2005
11. Breaking Through Success : A Commodity Investor ‘s Guide Book, Patrick Lafferty &
Nell Sloane
12. Managing Commodity Price Risk & Developing Countries , Stijn Claessens & Ronald C.
Dunkan, John Hopkins University Press, 1994
13. The Commodities Glossary , Commodity Futures Trading Corporation, International Law
& Taxation ,2005
Dissertation Project 100 Marks
Scheme of Assessments for Subjects of 100 Marks
The Semester end Examination will be conducted for 60 Marks.
Internal Assessments will be conducted for 40 Marks.
The allocation of 40 marks shall be on the following basis: -
m) Periodical class tests held in the given semester (20 Marks)
n) Presentations throughout the semester (10 Marks)
o) Attendance and Active participation in routine class instructional deliveries (05 Marks)
p) Overall Conduct as a responsible student, mannerism and articulation and exhibition of
leadership qualities in organizing related academic activities. (05 Marks)
Note: A Student has to separately secure minimum 50% marks (i.e 20 out of 40) in the
internal assessments and secure minimum 50% marks (i.e 30 out of 60) in the
Semester End Examination in every subject to be declared as Pass.
Question Paper Pattern for Semester End Examination (60 Marks)
There will be Seven Questions in all.
Q1 would be compulsory and would carry 20 Marks
In addition to Q1, there would be six questions. Each question would carry 10 Marks. Each of
these Six Questions will have three sub – questions and each sub – question would carry 05
Marks
Students have to attempt any four out of the remaining six Questions and within each question;
students have to attempt any two out of three sub – questions.
In all, students have to attempt five questions i.e (Q1+Any Four of the remaining)
Q1 – 20 Marks (Compulsory)
Attempt Any Four out of the Remaining Six Questions
Q2 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q3 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q4 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q5 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q6 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Q7 (a) --------------- (5 Marks)
(b) --------------- (5 Marks)
(c) --------------- (5 Marks)
Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks
Credit Based Grading System for One Year Diploma Course
Semester End Examinations
Credit Point:
A Credit Point denotes the quantum of effort required to be put in by a student, who takes
up a course. In other words, it is an index of number of learning hours prescribed for a
certain segment of learning.
Learning Hours
Learning Hours for Subjects of 100 Marks (60+40)
Learning Hours consist of Classroom teaching hours and other complementary learning activities
indicated here below
7) Classroom teaching hours ((15 Sessions X 3 Hours = 45 Hours))
8) Other Complementary learning activities (75 Hours)
The learning activities consist of the following:
Reading, Introspection, Thoughtful Reflection, Group Discussions, Lectures, Field Work,
Workshops, Counseling Sessions, Watching Educational and Informative Videos,
Assignments, Live Projects, Case Studies, Presentations, Preparation for Examinations,
Participation in academic and extra – curricular activities, inculcation of industry specific
skills and training & development sessions.
The total learning hours would be thus equivalent to 45+75=120 Hours for subjects of
100 Marks
Credit Point Computation
One credit is construed as equivalent to 30 learning hours.
Credit completion and Credit accumulation:
Each module of an academic program has been assigned specific credit points defining
successful completion of the course under study.
Credit completion or Credit acquisition may be considered to take place after the learner
has successfully cleared all the evaluation criteria with respect to a single course.
A learner who successfully completes a 4 CP (Credit Point) course is treated to have
collected or acquired 4 credits. His performance above the minimum prescribed level
(viz. grades / marks obtained) has no bearing on the number of credits collected or
acquired.
A learner keeps on accumulating more credits as he completes additional courses.
Introduction of Grading System at the University of Mumbai
A well designed evaluation system that integrates the aforesaid parameters having due attention
to their relative importance in the context of the given academic programme.
What is Grading?
Grading, in the educational context is a method of reporting the result of a learner’s
performance subsequent to his evaluation. It involves a set of alphabets which are clearly
defined and designated and uniformly understood by all the stake holders.
A properly introduced grading system not only provides for a comparison of the learners’
performance but it also indicates the quality of performance with respect to the amount of
efforts put in and the amount of knowledge acquired at the end of the course by the
learners.
The Seven Point Grading System
A series of meetings of all the Deans & Controller of Examinations were held to discuss
the system of grading to be adopted at the post graduate level. Mumbai University,
subsequently in its Academic Council meeting and in its Management Council meeting
resolved to adopt and implement the Seven (07) Point Grading System from the
academic year 2012-13.
The Grade Point and the grade allocation shall be as per the Grade Table given below:
Note: - Consider 1 Grade Point is equal to Zero for CG calculations in respect of failed
learner/s in the concerned course/s.
Conversion of Marks to Grades and Calculations of GPA (Grade
Point Average)
In the Credit and Grade Point System, the assessment of individual Courses in the
concerned examinations will be only on the basis of marks obtained; however these
marks shall be converted later into Grades by a mechanism wherein the overall
performance of the Learners can be reflected by the overall evaluation in terms of
Grades.
Abbreviations used for gradation needs understanding of each and every parameter
involved in grade computation and the evaluation mechanism. The abbreviations and
formulas used are as follows:-
Abbreviations and Formula’s Used:-
G: Grade
GP: Grade Points
C: Credits
CP: Credit Points
CG: Credits X Grades (Product of credits & Grades)
∑CG: Sum of Product of Credits & Grades points
∑C: Sum of Credits points
SGPA = ∑CG
------
∑C
SGPA: Semester Grade Point Average shall be calculated for individual semesters. (It is also
designated as GPA)
CGPA: Cumulative Grade Point Average shall be calculated for the entire Programme by
considering all the semesters taken together.
Special Point to Note:
While calculating the CG the value of Grade Point 1 shall be considered as Zero (0) in case
of learners who failed in the concerned course/s obtaining marks below 50.
After calculating the SGPA for an individual semester and the CGPA for entire programme, the
value can be matched with the grade as given in the Grade Point table as per the Seven (07)
Points Grading System and expressed as a single designated GRADE such as O, A, B, etc….
The SGPA of learners who have failed in one subject or more than one subjects shall not be
calculated.
Illustrations of the Calculations: -
Credit Points and Grading Calculations for First Semester
1 Credit = 30 Learning Hours
Result: - Passing in All Courses with more than 50% Marks
Courses In
Semesters
No of
Learning
Hours
Credits
Per
Course ( C
)
Marks
Obtained
(%)
Grade
Grade
Points
(G)
∑CG =
CxG
SGPA =
∑CG/∑C
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
60 4 55 D 3 12
88/20=4.4
Wealth
Management &
Alternative
Investments
60 4 60 C 4 16
Security
Analysis &
Portfolio
Management
60 4 70 A 6 24
Entities in
Financial
Services World
& Role of a
Finance
Executive
60 4 80 O 7 28
Analysis of
Financial
Statements
60 4 50 E 2 8
Total 480 ∑C=20
Credit Earned = 20 ∑CG =
88 Grade C
Passes
Credit Points and Grading Calculations for First Semester
1 Credit = 30 Learning Hours
Result: - Fails in One Course or More than One Courses with Less than 50% Marks
Courses In Semesters
No of Learning
Hours
Credits Per Course ( C )
Marks Obtained
(%) Grade
Grade Points
(G)
∑CG = CxG
SGPA = ∑CG/∑C
Introduction to
Equity, Fixed
Income
Securities &
Derivatives
60 4 55 D 3 12
--------
Wealth
Management &
Alternative
Investments
60 4 60 C 4 16
Security
Analysis &
Portfolio
Management
60 4 70 A 6 24
Entities in
Financial
Services World
& Role of a
Finance
Executive
60 4 80 O 7 28
Analysis of
Financial
Statements
60 4 45 F 1 0
Total 480 ∑C=20
Credit Earned = 16 ∑CG =80
Grade F Fails
Note: - Consider 1 Grade Point is equal to Zero for CG calculations of failed
learner/s in the concerned course/s.
The student has been awarded 1 Grade Point, even though he has failed in the
subject of Analysis of Financial Statements, however, 1 Grade Point is equal to Zero
for CG calculations of failed learner/s in the concerned course/s.
The SGPA has not been calculated as the student has failed.